Blink Charging Co (BLNK) acquired Blue Corner N.V. in a cash and stock deal valued at approximately $24 million, or €20 million. Following the announcement, shares of the electric services company rose 3.2% to close at $31.08 on May 11.
Belgium-based Blue Corner is an Electric Vehicle (EV) charging operator. It has a portfolio of 7,071 charging ports with a strong charging network in Europe. The deal expands Blink’s EV portfolio in the growing European EV market.
Blink made its foray into the European market in Sept 2019 through a joint venture with Eunice Energy Group. Since then, the company has made varied efforts to expand with new partnerships and the deployment of its EV charging stations.
The Blue Corner buyout is in line with the company’s strategy to expand its presence in Europe. The deal will further expand the company’s infrastructure footprint in Western Europe across Belgium, Luxembourg, the Netherlands, and France.
Additionally, the company formed Blink Holdings B.V., a new Dutch company in Amsterdam, in a bid to drive its growth in Europe.
Blink Charging CEO said, “We are very excited about this acquisition and the opportunity it provides Blink to have a significant presence in Europe quickly. As a key contributor to the expanding EV landscape, we are continuously looking for opportunities to strategically increase our global assets while also making EV charging more accessible. International expansion is fundamental to our rapid growth and will accelerate the success we are already achieving in the region. Our aggressive international strategy complements a series of significant domestic wins and new contracts that have exponentially expanded our network in the US.” (See Blink Charging stock analysis on TipRanks)
On May 10, Needham analyst Vikram Bagri initiated coverage of the stock with a Buy rating.
Bagri commented, “BLNK’s early mover advantage, multiple business models, over ~$230mm cash on the BS, vertically integrated value chain, and strong footprint allow the company to be highly competitive in the EV charging market.”
“We estimate that number of EV chargers in the US will expand at ~25% CAGR through 2030. We estimate that this level of growth in connectors will increase BLNK’s hardware TAM to $3B and EV energy consumption TAM to ~$13B in 2030. We expect BLNK to be profitable in 2024. Beyond 2025, we forecast a revenue CAGR of 16% through 2030,” the analyst added.
Consensus among analysts is that BLNK is a Strong Buy based on 3 Buys and 1 Hold. The average analyst price target of $45 implies 44.8% upside potential. The stock has exploded almost 1,589% over the past year.