Xtreme Power’s assets sold to German company
Jun 17, 2014
Austin American Statesman
The assets of Kyle-based energy storage company Xtreme Power Inc. have been purchased by Younicos Inc., a Germany-based grid battery and energy management company.
The assets were purchased through a Chapter 11 bankruptcy auction, Younicos said. Financial terms of the purchase were not release.
Xtreme Power — which makes energy storage and power management systems for utilities, wind farms and manufacturing companies — had filed for bankruptcy in January, saying at the time that it had $34,000 in cash in the bank and $10 million in debts. The bankruptcy filing said the company was seeking a new owner.
That new owner is Younicos, which was founded in 2006 and says it has about 10 megawatts of energy-management projects either completed or in progress, and is developing about 10 megawatts more in projects across Europe.
Xtreme Power said in January that it had 60 megawatts of active battery storage in 12 projects around the world. Xtreme Power’s CEO Alan Gotcher said at the time that the company had letters of intent for $65 million of new business.
“This is a historic and strategic moment for Younicos. We’re onboarding a great and talented team, acquiring important assets, know-how and customer relationships that are complementary to our current product and services offering,” James McDougall, CEO of Younicos, said in a written statement. “The Xtreme Power asset acquisition and joining of forces establishes Younicos firmly in North America, one of the highest potential growth markets for large scale energy storage applications. We look forward to integrating the two teams under the Younicos flag and in doing so becoming the world leader in large scale energy storage solutions.”
Gotcher had said in January that the Chapter 11 filing was structured to allow one of the company’s creditors to file a stalking horse bid for the company, in the event that alternative bids during the Chapter 11 process prove to be insufficient. That creditor, Horizon Technology Finance, said it received $9.9 million as part of the Younicos purchase of Xtreme Power.
Xtreme Power, which was founded in 2004, was funded by Sail Ventures and Bessemer Venture Partners, among other investors. The company received a $2 million grant from the Texas Emerging Technology Fund in 2007.