06/29/2015 08:46 EDT | Updated 06/29/2016 05:59 EDT

Ballard Power buys fuel cell company Protonex in $30 million transaction

VANCOUVER - Ballard Power Systems (TSX:BLD) has struck an agreement to buy fuel cell developer Protonex Technology Corp. in a transaction valued at $30 million.

The Vancouver-based company said Monday the definitive agreement includes Protonex's debt obligations of about $4.4 million while the remainder of the $25.6 million will be paid by issuing 11.2 million Ballard shares.

Protonex is based in Southborough, Mass. and owns about 85 patents issued and pending for a variety of power management technologies.

The company has supplied products to the U.S. army and navy among other commercial clients.