Silence Acquisition: Key Details, Impact, and What Comes Next

ACCIONA's acquisition of Silence marks a significant step in the electric vehicle industry. By integrating Silence's innovative urban mobility solutions, ACCIONA aims to enhance sustainable transport options. This strategic move not only broadens ACCIONA's portfolio but also underscores its commitment to addressing urban mobility challenges and promoting zero-emissions transportation.

What Is Silence?

Founded in 2012, Silence specializes in urban ecomobility solutions, offering a range of electric scooters and battery-swapping stations. Their unique selling point lies in their innovative battery technology, which allows users to easily swap batteries at designated stations, significantly reducing downtime. This approach not only enhances convenience but also promotes sustainable urban transportation by minimizing emissions and operational costs.

Who Acquired Silence?

ACCIONA is a global leader in sustainable infrastructure solutions, particularly in renewable energy. The company offers a diverse range of services, including renewable energy solutions, transport infrastructure projects, water treatment and desalination plants, and sustainable real estate development. ACCIONA is committed to driving the transition towards a low-carbon economy and promoting social and economic development. Its influence is underscored by its involvement in significant global projects and alignment with the United Nations' Sustainable Development Goals.

When Was Silence Acquired?

ACCIONA acquired Silence on January 12, 2021. This acquisition came at a time when the electric vehicle industry was experiencing significant growth, driven by increasing environmental concerns and government incentives for sustainable transportation. The timing aligns with ACCIONA's strategic initiatives to expand its footprint in the renewable energy and electric vehicle sectors, furthering its commitment to sustainable urban mobility solutions.

Why Was Silence Acquired?

• Market Expansion: The acquisition of Silence allows ACCIONA to enter new markets by leveraging Silence's established presence in urban ecomobility. The partnership with Nissan for European distribution of the Silence S04 NanoCar enables ACCIONA to access Nissan’s extensive dealership network across Europe, starting with France and Italy, and expanding to other markets. Additionally, the collaboration with OK Mobility to deploy Silence vehicles in Spanish cities and other European locations further broadens ACCIONA's market reach.
• Technology Integration: ACCIONA benefits from integrating Silence's advanced battery technology and electric vehicle innovations into its broader sustainability projects. The Silence S04 features removable lithium-ion batteries and the My Silence app, which offers keyless functions, vehicle sharing, and real-time status updates. This technology aligns with ACCIONA's renewable energy initiatives and enhances its infrastructure projects by incorporating cutting-edge electric mobility solutions.
• Competitive Advantage: The acquisition strengthens ACCIONA's position against competitors by providing a unique value proposition in the electric vehicle market. Silence's battery swapping system, which allows for quick battery changes in less than 30 seconds, replicates the traditional refueling experience and offers a significant competitive edge. The partnership with Cepsa to develop a network of battery swapping stations further enhances ACCIONA's leadership in sustainable urban mobility solutions.

Acquisition Terms

• Acquisition Price: The acquisition price was not publicly disclosed.
• Payment Method: The payment method was not publicly disclosed.
• Key Conditions or Agreements:
  • ACCIONA and Cepsa agreed to develop a network of battery swapping stations, starting with a pilot project in Barcelona and Madrid.
  • Silence's electric scooters feature a removable battery system, allowing users to swap batteries at designated stations.
  • ACCIONA and Nissan have a distribution agreement for the Silence S04 NanoCar in Europe, starting with France and Italy.
  • OK Mobility acquired 5,800 Silence S04 nanocars and 700 S01 scooters, with an initial deployment in Spanish cities and plans to expand to other European locations.

Impact on Silence

The acquisition of Silence by ACCIONA has led to significant operational changes, including the establishment of a new factory in Barcelona's Zona Franca for the production of the Silence S04. This move revitalizes an area traditionally dedicated to combustion-engine cars. Additionally, ACCIONA has partnered with Nissan to distribute Silence products through Nissan’s network in France and Italy, expanding to other European countries. This strategic partnership aims to leverage Nissan's extensive dealership network, enhancing the reach and availability of Silence's innovative electric vehicles.

In terms of product offerings, the acquisition has introduced the Silence S04, a 100% electric, four-wheeled vehicle designed for urban environments. The vehicle features a subscription-and-battery-swap model, allowing batteries to be swapped at numerous exchange points across major Spanish cities. Employee reactions have not been explicitly documented, but the expansion and new partnerships suggest a positive outlook. Customer reactions, while not detailed, are likely favorable given the innovative features and cost savings associated with the new product offerings. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly and efficiently.