Sensata Technologies acquired renowned energy storage and power conversion provider Dynapower from private equity firm Pfingsten Partners for $580 million in cash. The transaction is subject to regulatory approvals and other customary closing conditions. Sensata and Dynapower expect to complete the transaction early in the third quarter of 2022.
Dynapower provides energy storage and power conversion systems including inverters, converters, rectifiers and custom transformers for renewable energy generation, green hydrogen production, electric vehicle charging stations, and microgrid applications, as well as industrial and defense applications. Dynapower also provides aftermarket sales and service to maintain and monitor an installed base of equipment at customer locations.
Dynapower is a huge get for Sensata’s Clean Energy Solutions and pairs with Sensata’s recent acquisitions of Gigavac, Lithium Balance and Spear Power Systems.
The opportunity: Dynapower is expected to generate over $100 million in annualized revenue in 2022 with approximately 20% EBITDA margins, while averaging annual growth in excess of 30% through 2026. Dynapower’s addressable markets are large and fast-growing, including energy storage and power conversion systems for grid-tied renewable power conversion – an $800M addressable market growing to $2.7B in 2030, and green hydrogen production, a $250M market experiencing a period of hyper growth fueled by large private and public investments expected to be a $2.6B addressable market in 2030.
Dynapower has had recent wins with global blue-chip customers in green hydrogen rectifiers, commercial & Industrial power conversions solutions, and front of meter power conversion and energy storage.
Dynapower is expected to represent more than 50% of the $500 million of acquired revenue needed to reach Sensata’s goal of $2 billion in Electrification revenue by 2026, as outlined in Sensata’s recent Electrification Teach-In.