United Technologies Closes Strategic Intellectual Property Transaction with Ballard Power Systems
HARTFORD, Conn., May 14, 2014 /PRNewswire/ -- United Technologies Corp. (NYSE: UTX) completed the sale of transportation fuel cell intellectual property (IP) assets to Ballard Power Systems (NASDAQ: BLDP)(TSX: BLD). These assets consist of over 800 patents and patent applications, as well as patent licenses, invention disclosures and know-how largely related to Proton Exchange Membrane (PEM) fuel cell technology.
As consideration for the assets, UTC 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, UTC and Ballard have also 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 UTC portfolio with Ballard's existing intellectual property.
"UTC has a vast portfolio of IP and is taking technologies into new and adjacent markets to help accelerate innovation around the globe," said Kelly Romano, Vice President of UTC's Innovation Business Development group. "Today, we are excited about the successful transaction with Ballard which will provide a great platform for commercializing UTC's world-class fuel cell IP portfolio together with Ballard's engineering and manufacturing expertise."
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."
Ballard Power Systems provides clean energy fuel cell products enabling optimized power systems for a range of applications. Products deliver incomparable performance, durability and versatility.
United Technologies Corp., based in Hartford, Connecticut, provides high technology products and services to the building and aerospace industries. To learn more about UTC, visit its website at www.utc.com, or follow the company on Twitter: @UTC.
This release includes statements related to anticipated business opportunities that constitute "forward-looking statements" under the securities laws. All forward-looking statements involve risks, uncertainties and assumptions that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. Risks and uncertainties include, without limitation, the effect of economic conditions in the markets in which we operate; fluctuation in commodity prices; uncertainties related to the development and production of new products and services; the effect of changes in laws and regulations; and other factors beyond our control. For additional information identifying risk factors and uncertainties, see UTC's reports on Forms 10-K, 10-Q and 8-K filed with the SEC from time to time.
Contact: Danielle Smith, UTC
(860) 728-6238 www.utc.com
SOURCE United Technologies Corp.