ADS-TEC Energy, a Germany-based electric vehicle (EV) charging company, has signed a definitive business combination agreement with European Sustainable Growth Acquisition Corporation (EUSG), a special purpose acquisition company, resulting in ADS-TEC Energy becoming a publicly listed company. The pro forma market capitalization of the combined company is approximately $580 million.
ADS-TEC Energy is a company focused on lithium-ion technologies, storage solutions, fast EV charging, and energy management systems.
The combined company will remain listed on the NASDAQ Capital Market. The transaction is expected to be completed in the fourth quarter of 2021.
With this transaction, EUSG has also secured commitments of a fully subscribed $156 million at $10 per share in private investment in public equity (PIPE). APG, Invesco, Polar Structure, and SwedbankRobur, among others, anchored the private investment in public equity.
The company said a portion of proceeds from the PIPE would be utilized to fund the cash consideration required to effect the business combination. While a suitable portion of the proceeds would be used to enhance the development of the company’s storage solutions, charging, and energy management platforms and expand its reach into the United States and Europe.
ADS-TEC Holding owns 61% of ADS-TEN Energy, and Bosch Thermotechnik owns 39%. ADS-TEC Holding, Bosch, and EUSG’s sponsors also participated in the private investment in public equity.
Following the transaction, Thomas Speidel, Founder and Chief Executive Officer of ADS-TEC Energy will continue to lead the combined company.
According to ADS-TEC Energy, its battery buffered technology enables ultra-fast charging on current power-limited grids without additional infrastructure power upgrades. Through this technology, ultrafast charging could be introduced to various geographies and segments like city centers, remote and rural areas to provide access to electric vehicle charging facilities.
Commenting on the deal, Thomas Speidel said, “With EUSG’s funding and expertise combined with our existing investor base and strong client network, we will be able to expand our technology into markets of the United States and Europe, delivering charging speeds and capabilities that would otherwise not be possible on existing networks. We will also work to ensure that electric vehicle charging is accessible to all.”
According to Mercom’s 1H and Q2 2021 Funding and M&A Report for Storage, Grid & Efficiency, smart charging companies received the most funding of $271 million in 8 deals in the first half of 2021.
Last month, Allego, an EV charging network company, signed an agreement for a business combination with Spartan Acquisition Corp III, resulting in Allego becoming a publicly listed company.