BayoTech has continued its growth spree with the acquisition of hydrogen fuel company IGX Group.
With the acquisition, which closed for an undisclosed amount, BayoTech says it is now a full-service hydrogen fuel supplier — capable of providing production, transport, storage and fueling solutions.
The company has technology that produces hydrogen fuel by putting methane through modular reactors and then storing it. It says its service reduces transportation and storage costs, leading to a lower carbon footprint compared to other systems. The company was incorporated in 2015.
"By combining forces with IGX, we are disrupting the established centralized hydrogen supply chain with a new, highly efficient model of local hydrogen production hubs," BayoTech CEO Mo Vargas said in a statement.
A representative for the company was unable to be reached for further comment.
IGX Group Inc. is located in Berkeley, California, according to the California Secretary of State. Its product portfolio includes gas transport trailers and storage, hydrogen fueling, zero-emission generators and cylinder repair, retesting and retrofitting, according to its website. The company also has an asset leasing arm called Gas Transport Leasing.
Former IGX president Michael Koonce will lead the newly-merged sales team under BayoTech, as well as be its new president.
"The shared vision of our combined team and the support of our investors positions us to accelerate our growth. We'll continue to lead the way as a trusted hydrogen supply partner during a dynamic time for the industry," he said in a statement.
The deal between the two firms is just the latest in a series for BayoTech.
It comes one day after the disclosure of an equity investment from the venture capital arm of construction and mining equipment manufacturer Caterpillar Inc. The investment will be used to speed up BayoTech’s growth with product development and the expansion of its infrastructure, according to the company. BayoTech allows customers to purchase, lease or rent its equipment.
And BayoTech is set to receive as much as $157 million in financing from New York private equity firm Newlight Partners with participation from existing New Mexico investors Sun Mountain Capital and Cottonwood Technology Fund in Santa Fe.
