Beam Global To Acquire Amiga for $11M

True to its name, San Diego-based Beam Global (NASDAQ: BEEM) is stretching out internationally.

On June 16, the company – a provider of products and technologies for electric vehicle (EV) charging, energy storage, energy security and outdoor media – announced it had signed a binding letter of intent to acquire Amiga DOO Kraljevo, a European manufacturer of specialized structures and equipment, producing streetlights, communications and energy infrastructure. Amiga’s manufacturing, engineering and sales teams serve municipalities, states and commercial customers in 16 nations.

“We have long believed that the European market offers significant opportunities for Beam Global expansion. The automotive market is larger than China or the U.S. and Europe’s commitment to sustainability, electrification and renewable energy is active both at the government and commercial levels,” said Beam Global CEO Desmond Wheatley. “We believe that Amiga is a perfect fit for us because they have all of the skills, capabilities and factory facilities required to make our products through the IP that we control.”

Strategically, Beam Global views the Amiga acquisition as a fast track to European markets that offer opportunities for its off-grid, zero construction or electrical work products because of the EU’s strong sustainability mandates, a renewed focus on energy security following the war in Ukraine, and its Old World infrastructure that makes it difficult to utilize power grids in deploying EV charging stations.

“We believe that Beam Global’s suite of products are ideally suited for deployments where [these] conditions exist because they require no construction or electrical work, are renewably energized and do not rely on the utility grid for electricity,” Wheatley said.

Transaction Terms

Beam Global is expected to acquire Amiga for around $11 million (10M EUR) in a mix of EUR 7M cash and EUR 3M in Beam Global stock. The transaction also includes performance based earn-outs which would be distributed to Amiga shareholders.

As part of the consideration paid for Amiga, Beam Global will be receiving buildings and land independently valued at EUR 7M as well as plant and equipment independently valued at EUR 6M of replacement value.

Beam Global’s acquisition of Amiga is pending due diligence and an audit of Amiga’s financial statements under U.S. GAAP (generally accepted accounting principles). The transaction is expected to be finalized in Q3 or Q4 2023.

Beam Global plans to integrate Amiga’s 210 employees into its own team in order to accelerate product development cycles and reduce the requirement for the company to add engineering headcount in the United States. Pending the closing of the transaction, Amiga will be rebranded Beam EU.

“I am excited by the prospect of combining our engineering team with their talent in San Diego and Chicago so that we can rapidly introduce Beam’s existing and contemplated products like the EV Standard to the European and surrounding regions,” said Ivan Tlacinac, Amiga CEO and owner. “There is a great deal of appetite for EV charging infrastructure, renewable energy and energy security in Europe at the moment and Beam’s products provide all three. I am thrilled that we will soon be capitalizing on this opportunity as part of the growing Beam Global family.”

Strong Finances

The combined companies are already in a strong position to capitalize on the planned merger.

According to financial statements provided to Beam Global, Amiga generated over EUR 8.5M in revenue in 2022 and had gross profit during that period. Beam Global expects the acquisition to be accretive based on a revenue multiple with expected additional operating synergies.

Beam Global’s Q2 revenue is also projected to exceed its highest quarterly revenue in the company’s history, landing in the range of $15.5 million to $17 million for the three months ending June 30.

Following the announcement, stock in BEEM dipped slightly from $10.50 at opening to $9.22 at closing on June 16. Following the Juneteenth holiday, the stock has since regained its value, trading again at around $10.50.

Beam Global

Founded: 2006
CEO: Desmond Wheatley
Headquarters: Sorrento Valley
Business: Clean technology leader providing innovative, sustainable products and technologies for EV charging, energy storage, energy security and outdoor media
Stock: BEEM (NASDAQ)
Revenue: $22 million (2022)
Employees: 130
Website: beamforall.com/
Notable: Beam Global was named the winner of the 2023 Stevie Award, Gold level Company of the Year in the Energy sector in the 21st  Annual American Business Awards