Blink (BLNK) to Boost Charging Network With SemaConnect Buyout

In a bid to expand its charging network, electric vehicle (EV) charging company Blink Charging BLNK inked a $200 million cash-and-stock deal to acquire SemaConnect. Maryland-based SemaConnect is one of the leading providers of EV charging infrastructure solutions in North America. SemaConnect CEO Mahi Reddy is set to join Blink's board of directors after the closure of the acquisition, subject to the fulfillment of customary closing conditions.

This transformative deal would enable Blink to gain full control over its supply chain. It would become the only EV charging firm providing 100% vertical integration, ranging from research and development, hardware design and manufacturing to EV charger ownership and operations. The buyout is expected to add close to 13,000 EV chargers, 3,800 site host locations and more than 150,000 registered EV driver members to Blink's existing network.  The acquisition of SemaConnect will also speed up Blink’s expansion into markets like California.

The buyout also allows Blink to capitalize on the Biden administration's $7.5 billion EV infrastructure bill to establish a network of 500,000 EV chargers along U.S. highways and communities.Before electric cars take off in a big way, the rollout of public infrastructure is critical to quell the range anxiety of EV drivers. Thankfully, the development is on the right track.

One of the leading players in the EV charging space, Blink has deployed over 30,000 charging ports across 18 countries. As global EV sales are expected to rise to 10 million units by 2025 from around 2 million vehicles in 2019, Blink is set to benefit from its strategic acquisitions including Blue Corner and EB Charging. Subsequent to the close of the first quarter of 2022, Blink acquired UK EV infrastructure leader, EB Charging for $23.4 million and added more than 1,150 chargers to its existing network.

Blink incurred a quarterly loss of 36 cents per share for the first quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of 40 cents but wider than the year-ago quarter’s loss of 18 cents per share. Total revenues of $9.8 million surpassed the Zacks Consensus Estimate by 52.72%. The top line also skyrocketed 339% on a year-over-year basis. Product sales, which constitute 82% of BLNK’s total revenues, soared 382% from the comparable year-ago quarter. Service revenues jumped 346% year over year. Other revenues edged up 8%. As of Mar 31, Blink Charging had cash and marketable securities of $161.9 million.

Blink currently carries a Zacks Rank #2 (Buy). BLNK’s key peers include ChargePoint CHPT, Beam Global BEEM and EVgo EVGO.

ChargePoint is an EV charging company that went public on Mar 1, 2021 through a reverse merger with Switchback Energy Acquisition Corporation.

In the trailing four quarters, ChargePoint missed estimates thrice and matched on the other occasion, with the average negative surprise being 13.77%. The Zacks Consensus Estimate for CHPT’s fiscal 2023 sales and earnings implies year-over-year growth of 97% and 55%, respectively. The stock currently carries a Zacks Rank #3 (Hold).

Beam Global produces patented infrastructure products for the electrification of transportation. It produces products for electric vehicle charging, outdoor media and energy security. Beam Global, formerly known as Envision Solar, is based in San Diego, CA.

Over the trailing four quarters, BEEM missed earnings estimates on three occasions and missed on the other, the average negative surprise being 17%. The Zacks Consensus Estimate for Beam Global’s 2022 sales and earnings suggests year-over-year growth of 99% and 11%, respectively. The stock currently carries a Zacks Rank #3.

EVgo is an EV charging company that went public on Jul 2, 2021, following the completion of a merger with blank-check firm Climate Change Crisis Real Impact I Acquisition Corp.

Over the trailing three quarters, EVGO surpassed earnings estimates on two occasions and missed on the other two, the average negative surprise being 48.9%. The Zacks Consensus Estimate for EVgo’s 2022 sales and earnings indicates year-over-year growth of 127% and 28%, respectively. The stock currently carries a Zacks Rank #3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research