Several electric vehicle companies have gone public this year by merging with SPACs (special-purpose acquisition company). Electric vehicle startups are turning to SPACs, to raise fast cash, and to get their vehicles to market.
The investors behind SPACs are also in admiration with the electric vehicle businesses as they expect that such cars and trucks could soon begin displacing vehicles powered by fossil fuels.
This year, three other automakers have already announced similar deals. They include Fisker, Lordstown Motors, and Canoo.
Now, joining the list is another electric vehicle charging network company, ChargePoint, that has struck a deal with Dallas-based Switchback Energy Acquisition Corp. This values the combined companies at about €2.06B.
Going public
“The EV charging industry is accelerating and it is expected that charging infrastructure investment will be €163B by 2030. As a first-mover in the space, ChargePoint has distinguished itself as the number one EV charging network and is well-positioned to deliver charging infrastructure as the expected transition to electric mobility accelerates,” says Scott McNeill, CEO, CFO, and Director of Switchback.
Upon transaction closing, and assuming no redemptions by Switchback stockholders, ChargePoint will have approximately €578M in cash, resulting in a total pro forma equity value of approximately $3B (nearly €2.58M). Cash proceeds raised in the transaction will be used to repay debt, fund operations, and support growth.f
Besides, the company also looks to use the funds to expand its reach in North America and Europe, to enhance its technology portfolio. Approximately $493 million (about €424M) in net proceeds will advance ChargePoint’s commercial, fleet, and residential businesses.
The transaction includes $225M (€193.6M) upsized PIPE at $10.00 (nearly €8.61) per share anchored by institutional investors, including Baillie Gifford and funds managed by Neuberger Berman Alternatives Advisors
ChargePoint and Switchback will host a joint investor conference call to discuss the proposed transaction today, September 24, 2020, at 8:30 am ET.
Upon the transaction closing, the combined company will be named ChargePoint Holdings, Inc. and will be listed on the New York Stock Exchange (the “NYSE”).
About ChargePoint
Founded in California in 2007, ChargePoint has created one of the world’s largest charging networks with a capital-light model by selling individual organisations and businesses, known as site hosts.
The parking spaces owned by these hosts are integrated into one network available to the driver in the company’s mobile app. Charging is matched to parking duration, from energy-managed AC level 2 to DC fast charging.
The company has over 115,000 charging stations, and its users have access to an additional 133,000 “roaming” locations across North America and Europe. As per the company, drivers plug into the ChargePoint network approximately every two seconds and have completed more than 82 million charging sessions to date.
Image credit: ChargePoint
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