Fort Lee-based Pioneer Power Solutions Inc., a manufacturer and distributor of power generation equipment, announced it has completed the $4.4 million sale of its subsidiary Pioneer Critical Power Inc. to CleanSpark Inc.
CleanSpeak is a San Diego, California-based microgrid company with advanced technology for distributed energy resource management systems.
PCPI’s primary assets are a series of underwriters laboratories safety files, Pioneer said. The files were purchased by Pioneer in March 2013 as part of its acquisition of Power Systems Solutions. The files will enable CleanSpark to manufacture designs related to critical low voltage power equipment which will enhance its existing microgrid business, it said.
“The sale of these assets, primarily intellectual property, represents another step in our efforts to create incremental value from our assets. Our core business continues to perform well, and we are actively engaged in discussions to sell our switchgear business to further streamline our portfolio and unlock shareholder value,” Nathan Mazurek, Pioneer’s chairman and CEO, said.
Under the deal, Pioneer will retain and continue to operate its engine generator business as Pioneer Critical Power and CleanSpark will change the name of the acquired company no later than Feb. 21.
“We believe that CleanSpark will be able to derive significant incremental value from these intellectual property assets, beyond what Pioneer has generated, and the receipt of CleanSpark equity represents an attractive upside opportunity for Pioneer and its shareholders,” Mazurek said. “Subject to market, tax, securities law limitations and other considerations, we expect to distribute this equity to our shareholders as soon as practicable.”