EnSync acquires DCfusion LLC

Written By: Stratton Report
March 2, 2017

On March 2, EnSync, Inc., a developer of innovative DER systems and internet of energy control platforms for the utility, commercial, industrial and multi-tenant building markets, announced it had acquired DCfusion LLC, a DC system engineering design, consulting and policy.

Per the firm, no cash was required to complete the transaction, which will see DCfusion operating as a subsidiary of EnSync, Inc. within the calendar year.

According to EnSync, as electric markets incorporate more renewables, the need for DC based and hybrid DC-AC system design becomes increasingly critical because renewable energy sources are largely DC, relatively small in scale, and often widely distributed, which makes coupling them into the current “synchronous” system via AC increasingly disruptive and expensive. In addition, the firm notes that energy storage is natively DC, electricity trading is much simpler using DC than AC, and that resiliency is better achieved with DC because the very nature of AC systems, generally being reactive, as opposed to actively controlled, creates latency issues that can be detrimental in critical applications requiring resiliency.

EnSync stressed that the acquisition of DCfusion brings experience of customer applied DC system design and consulting o complement EnSync Energy’s application engineering, and that DCfusion also brings a unique and substantial pipeline of potential projects in vertical markets that rely on the consultative expertise of the founders.

The DER developer highlighted the qualifications of co-founders Tim Martinson, who is presently responsible for business development, as well as those of David Geary, an expert in the evolution of DC power distribution for telecom and data centers, as well as microgrids integrating renewable energy and energy storage. 

EnSync also noted that DCfusion has been actively involved with worldwide standards and codes, and provides chair and committee positions within numerous organizations, including The EMerge Alliance, NFPA/NEC, INTELEC, SCTE, IEEE and IEC.

Brad Hansen, President and CEO of EnSync Energy Systems commented:

EnSync Energy has extensive experience in DER system design and integration, and DCfusion’s ability to aggressively drive differentiated capabilities to target markets furthers EnSync Energy’s value chain expertise, and opens up a consulting services revenue stream for the company.

As part of their compensation packages, both Geary and Martinson was issued inducement stock options to purchase a total of 90,000 shares of Company common stock with an exercise price of $0.56 per share,  The options will vest and become exercisable in full on February 28, 2020.