Solid State, a manufacturer & distributor of electronic components, entered into a conditional agreement to acquire Custom Power, a battery systems manufacturer and energy solutions provider, for $45 million.

Solid State said the acquisition helps to develop its brand portfolio and to provide increased capabilities to the group’s power business, specifically within the defense, medical and industrial markets.

“After lengthy negotiations, we are delighted to be able to announce this very exciting news. This will be Solid State’s largest acquisition to date and brings huge benefits to the group as well as to Custom Power.” Said Gary Marsh, Solid State Plc CEO.

Solid State is planning expansion through organic growth and targeted acquisitions, which the company hopes will provide increased scale and access to lucrative markets with high entry barriers.

“This is an exciting move that will combine the battery power capabilities of Custom Power with those of Solid State, allowing our customers access to highly customized power solutions on an international level. Both businesses are leaders in this field, and together they will benefit from increased reach, resources, and expertise. We are very much looking forward to joining the Solid State family and the opportunities that the increased scale will bring.” Said Mel Weis, CEO of Custom Power.

Earlier this week, Sensata Technologies, an industrial technology company that develops sensors, sensor-based solutions, controllers and software, and other mission-critical products, announced the acquisition of Dynapower, a provider of energy storage solutions from a private equity firm Pfingsten Partners, for $580 million.

According to Mercom’s 1H and Q2 2022 Funding and M&A Report for Storage, Grid & Efficiency, there were 13 energy storage M&A transactions in in 1H 2022 compared to nine in 1H 2021.

Recently, Equinor, a renewable energy company, signed an agreement to acquire a 100% stake in East Point Energy, a battery storage developer in the US. The transaction agreements were signed on 09 July, and the transaction is expected to get completed in Q3 2022.