By Steven Bell

TWO LEADING firms in the developing market for electric and hybrid electric vehicles were brought together yesterday when Axeon Holdings announced it was acquiring Dundee-based Advanced Batteries Ltd.

The purchase of ABL, better known as Wester Gourdie-based MPower Solutions, is worth an initial £1.5 million, although that could rise to as much as £3 million.

It is understood that the ABL team comprises 19 professional staff, plus a number of other employees in the manufacturing plant.

Axeon stressed last night there was no question of redundancies, and that they would be looking to “expand the team.”

The acquisition combines the expertise from both companies, Axeon’s Vindax semi-conductor technology with ABL’s battery know-how.

The companies have already jointly developed a prototype battery management system for high-capacity Lithium-ion battery packs.

A spokesman for Axeon said, “The combination of these technologies is of particular interest to the automotive market at this time.

“The need to reduce automotive emissions as a result of the impact on global warming has driven demand for electric and hybrid electric vehicles.

“At the same time, rising oil prices coupled with reduced costs of Li-ion cells are making it easier for electric vehicles to be economically competitive.

“A battery management system will enable EVs’ (electric vehicles) and HEVs’ (hybrid electric vehicles) power sources to perform more efficiently, making alternative power even more competitive against vehicles which are traditionally fuelled.

“Moving forward, Axeon Holdings plans to maintain the existing business of both companies while developing the large battery pack business of ABL to initially deliver complete battery pack solutions to EV manufacturers and develop a generic battery management system for EV and HEV manufacturers.”

MPower generated, in the 10-month period to October, unaudited sales of around £4.9 million and unaudited profit, before tax and exceptional items relating to debt, of approximately £440,000.

Key executives of ABL formerly built TDI Batteries into a £50 million-turnover business and subsequently formed MPower Batteries in 1999 and MPower in 2004.