Late last month we announced that we signed a non-binding letter of intent to sell a 51% shareholding in Tembo e-LV B.V., a Netherlands-based specialist battery-electric and off-road vehicle company. We’re now very pleased to confirm we’ve signed a definitive agreement and are moving forward with the USD$4.7 million acquisition.  

As we complete this exciting acquisition, Tembo will play an integral role in our sustainable energy solutions (SES) platform.  

Tembo’s expertise suits our accelerated SES roll out 

Tembo designs and develops a comprehensive fleet of customised electric vehicles (EVs), often for rugged applications. It services a diverse range of sectors, from mining, infrastructure and utilities to government services, game safaris and humanitarian aid. 

Given that we have an established customer base in mining, infrastructure and utilities, some of Tembo’s core markets, we are eager about the opportunities this acquisition presents. Our customers are already seeking unique opportunities to reduce their energy costs, increase productivity and become more sustainable long-term, and we can now offer the compelling option to electrify their fleets. 

‘We look forward to working even more closely with the Tembo team in scaling up its capacity to deliver customised and/or ruggedised commercial fleet electrification solutions,’ said Kevin Chin, VivoPower’s executive chairman and CEO. ‘This acquisition will enable [us] to accelerate the roll out of our sustainable energy solutions offering, with an initial focus on the mining, infrastructure and utilities sectors globally.’

Our analysis of publicly available industry data indicates that the acquisition could triple our global addressable light vehicle (LV) fleet market to USD$36 billion in the markets where Tembo is currently active. That estimate does not include Asia, South America or the United States, which could represent even further potential.  

Tembo will transform our growth trajectory 

Under the agreement, delivering EVs will become a pillar of our SES business. Tembo founder and CEO Frank Daams will remain with the company to oversee this. 

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

VivoPower will also have the option to acquire the remaining 49% of Tembo in the future.

    12-10-2020 14:20