CarCharging Wins Bid On Purchasing ECOtality’s Blink Network
Two months ago, charging station provider ECOtality warned that it was in a spot of financial trouble and might be headed to bankruptcy.
Why was ECOtality failing?
- the company disclosed they were not selling enough EVs to be profitable
- the ones they did sell were defective
- their future product lineup (Minit) had failed in the R&D phase
- OEMs were threatening to publically disclose problems with the chargers as well as advising the public to avoid using their products
- and last but not least – the DoE had suspended any remaining payments from a $100+ million grant (in connection with the EV Project) to the maker of Blink EVSE stations.
Sure enough, these problems were all far too big to manage, and 3 weeks ago the company did indeed file for Chapter 11 – leaving all that was left to do was auction off the assets to the highest bidder.
Auction day has now come and gone; with a reported winning bid of $3.3 million dollars (via Dow Jones) to acquire ECOtality’s main business – the Blink network by Blink Acquisition, which is a wholly-owned subsidiary of Car Charging Group, Inc.
What did CarCharging get for their money?
- all of Blink’s on hand inventory
- 12,450+ odd L2 installed charging stations
- 110 DC Fast charging stations
- and the Blink network itself
Dirty math puts the buyout of assets at around $250 per charging station.
“Since our inception, CarCharging’s intent has been to grow our business organically and through acquisitions, and with the purchase of ECOtality’s Blink assets, we believe that it will solidify our position as the leader in the electric vehicle charging industry,” said Chief Executive Officer of CarCharging, Michael D. Farkas.
In a “good news for Blink EVSE users,” as part of the deal, CarCharging is expected to honor warranty agreements with existing Blink customers.
Also of interest: Other assets not included in the main ECOtality bid were also sold off at the same time. Minit-Charger was bought by Access Control Group for $250,000 and ETEC Labs (ECOtality’s R&D wing) was purchased by Intertek for $750,000.