Calnetix's Former Subsidiary Acquired by FMC Technologies
Calnetix announced today that its former subsidiary Direct Drive Systems (DDS) has been acquired by FMC Technologies for approximately $120 million in cash.
DDS was created in 2003 as an internal Calnetix business unit to leverage Calnetix's proprietary core technologies into high-speed motor/generator systems above 1.5MW. Calnetix's core technologies, which include permanent magnet motors and generators, magnetic bearings, and power electronics, enabled DDS to create machines that are significantly smaller, lighter, and more efficient than traditional solutions. In 2004, DDS was spun out of Calnetix as a stand-alone company to provide compression and pumping solutions for pipeline, offshore platform, and subsea applications in the oil and gas industry.
Vatche Artinian, Chairman of Calnetix, stated, "We are delighted with DDS's success and the value recognition placed on our core motor/generator technology, which can be used in a wide variety of applications. DDS is just one expression of our technology base, and we will continue to leverage this base to create innovative products addressing new markets."
Brad Garner, Calnetix's CEO, added, "Calnetix is very pleased with DDS's success. We believe our core technology has an even stronger value proposition when applied to our current business focus of converting waste heat into electricity. The waste heat energy from US industry alone is ten times greater than the energy output of all existing US geothermal, solar, and wind resources combined. Making power from this wasted resource represents the best global opportunity to increase energy efficiency."
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