Note to Self: Plug Power Acquisition of ReliOn

Yesterday PLUG announced an acquisition of a PEM stack manufacturer, ReliOn, for $4mm in stock.  We are excited about this acquisition for a number of reasons:

1. Now they are more vertically integrated via the acquisition of a PEM stack manufacturer. This will allow the company to lower the cost of its PEM stack and diversify its supply source.
2. They are adding 34 USA patents to a portfolio of 150+ patents.
3. They are adding a new product category and new customers. It widens PLUG's offering which allows them to sell more into each customer. It becomes much easier if you have H on-site.
4. Acquire engineers and marketing people.
5. The price is right, the risk is minimal and from a strategic perspective it is a great deal.
6. There must be quite a few companies out there that don't have the scale and that are ripe for the picking.  PLUG is one of the few commercially viable applications currently in the fuel cell / Hydrogen market, and they can leverage that position to make strategic acquisitions.  

 Written by Michael Bigger