Electric vehicle charging network EVgo Services is set to go public through a merger with a special purpose acquisition company, or SPAC. Sources reportedly told Bloomberg that EVgo was approaching a deal with Climate Change Crisis Real Impact I Acquisition Corp. The news about the agreement was later confirmed with a press release from the SPAC.
EVgo reaches a deal with SPAC to go public
In the press release, Climate Change Crisis Real Impact I Acquisition Corp. said EVgo has entered into a definitive merger agreement with it. When the transaction closes, the combined entity is set to be listed on the New York Stock Exchange under the ticker symbol “EVGO.”
The merged company will have an implied market capitalization of $2.6 billion at the $10 per share PIPE subscription price if no shareholders exercise their redemption rights. The companies expect to raise about $575 million in net cash proceeds, including $400 million from the PIPE and about $230 million in cash held by Climate Change Crisis before any adjustments due to redemptions by shareholders and payment of deferred underwriting compensation, minus transaction expenses.
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Proceeds from the IPO will be used to push EVgo’s growth strategy by building out its charging network further and enhancing its position as the market leader in clean mobility.
Details on the company
EVgo was founded in 2010 and has partnerships with various automakers, fleet and rideshare operators, retail and other site hosts, utilities, governments and other stakeholders. The company has been expanding over the last 10 years and is now the most extensive network for public fast charging in the U.S.
Climate Change Crisis said the company has accelerated EV adoption by providing a reliable charging infrastructure. The company’s network is powered 100% by renewable energy. It has over 800 locations in 67 major metropolitan areas and 34 states.
EVgo CEO Cathy Zoi told The Verge in an interview that she is heartened that the market “now has an appetite to support businesses that do what EVgo does.” Over the last seven months, there have been many SPAC mergers in the EV space, thanks in part to Tesla’s success.
Climate investor David Crane started the investment fund that’s merging with EVgo to take it public. Previously, Crane was the CEO of energy company NRG, which helped get EVgo started.