VivoPower executes definitive agreement to acquire 51% of Tembo e-LV

VivoPower International Plc, (Nasdaq: VVPR) – an international battery technology, electric vehicle, solar and critical power services company has signed a definitive agreement to acquire a 51% shareholding in Tembo e-LV B.V., Bergeijk, Netherlands.

Tembo is a Netherlands-based specialist battery-electric and off-road vehicle company with global sales and distribution channels across four continents. It services a diverse range of sectors – from mining, infrastructure and utilities to government services, game safaris and humanitarian aid – by providing customized light electric vehicles, often for rugged applications.

The purchase consideration will be USD$4.7 million, and VivoPower will have the option to acquire the remaining 49% of Tembo in the future. The transaction is subject to customary closing conditions including capital structuring and funding mix requirements.

Tembo generated USD$2.3 million in revenue (unaudited) for its fiscal year ended December 31, 2019.

Based on an analysis of publicly available industry data, the Company estimates that the potential global addressable market for commercial fleet electric vehicles could be at least USD$36 billion within the markets in which Tembo is currently active (which presently do not include the United States, Asia or South America).

“We look forward to working even more closely with the Tembo team in scaling up its capacity to deliver customized and/or ruggedized commercial fleet electrification solutions. Furthermore, this acquisition will enable VivoPower to accelerate the roll out of our sustainable energy solutions offering, with an initial focus on the mining, infrastructure and utilities sectors globally,” said Kevin Chin, VivoPower’s Executive Chairman and CEO.

VivoPower and Tembo have over 700 active customers combined, many of which are in the mining, infrastructure and utilities sectors.

“VivoPower’s investment will allow Tembo to build additional capacity to meet pent up demand from our customers and improve efficiencies of scale. Given that the Tembo and VivoPower teams have already started working together on customer-initiated requests for proposals, we believe that this will translate into a growing order book,” said Tembo founder and CEO, Frank Daams.

About VivoPower

VivoPower is an international battery technology, electric vehicle, solar and critical power services company whose core purpose is to deliver sustainable energy solutions to its customers. VivoPower is a certified B Corporation and has operations in Australia, the United States, Canada and the United Kingdom.

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