Acquisition of United Technologies fuel cell IP portfolio
Strategic alliance with United Technologies focused on IP licensing
VANCOUVER, April 24, 2014 /PRNewswire/ - Ballard Power Systems (NASDAQ: BLDP)( TSX: BLD) today announced that it has acquired the transportation- and stationary-related fuel cell intellectual property (IP) assets of United Technologies Corporation ("UTC", NYSE: UTX). These assets consist of approximately 800 patents and patent applications, as well as patent licenses, invention disclosures and know-how primarily related to Proton Exchange Membrane (PEM) fuel cell technology. John Sheridan, Ballard President and CEO said, "We believe that this acquisition gives Ballard a commanding position in strategic fuel cell IP, strengthening our ability to grow shareholder value. Further, our new alliance with United Technologies will bolster Ballard's execution capabilities, particularly in the generation of IP licensing revenue." In addition to incremental IP licensing revenue opportunities, the acquired intellectual property assets will support other key elements of Ballard's corporate strategy: engineering service capabilities will be expanded in both automotive and non-automotive markets; and fuel cell product sales will be accelerated through product development initiatives in areas such as durability and balance of plant simplification. As consideration for the patents and patent applications as well as patent licenses, invention disclosures and know-how, UTC has received 5.1 million Ballard common shares, $2 million in cash, a grant back license to use the patent portfolio in UTC's existing businesses and a royalty on Ballard's future IP licensing income generated from the combined IP portfolio. In connection with the transaction, Ballard and United Technologies have formed a strategic alliance led by a joint Advisory Council. The Advisory Council will focus on licensing and other commercial market opportunities arising from the combination of the acquired UTC portfolio with Ballard's extensive intellectual property.