Allego, an electric vehicle (EV) charging network company, has signed an agreement for a business combination with Spartan Acquisition Corp III, a special purpose acquisition company (SPAC), resulting in Allego becoming a publicly listed company.
The new company, which will be listed on the New York Stock Exchange under the ticker ‘ALLG’, will have a market value of around $3.14 billion. The transaction is expected to be completed in the fourth quarter of 2021.
The transaction is estimated to provide $702 million in gross proceeds to the company. The proceeds include $552 million of cash held in trust and $150 million at $10 per share of a fully committed common stock private investment in public equity. The proceeds will be utilized to fund the EV charging stations’ capital expenditure and general corporate purposes.
Landis+Gyr, funds, and accounts managed by Hedosophia and ECP investment funds managed by affiliates of Apollo Global Management, and Meridiam anchored the private investment in public equity. Fisker, a designer of EVs and mobility solutions, also committed to making a $10 million private investment in public equity. Fisker also agreed to enter into a strategic partnership with Allego to provide a range of EV charging options for its consumers in Europe.
The company said Meridiam, an existing shareholder of Allego, would roll 100% of equity and retain 75% of the combined company. In addition, it would continue to be a long-term strategic partner of the combined company.
According to Allego, the company has over 26,000 public EV charging ports across 12,000 public and private locations in 12 European countries.
Mathieu Bonnet, Chief Executive Officer of Allego, said, “We are excited to announce our strategic partnership with Spartan, which will provide capital to accelerate our leadership position within the European charging market, all while maintaining a strong financial position throughout the growth phase.”
“Europe has one of the largest populations of EVs in the world, which is continuing to grow at a greater pace than many other major growth markets, including the United States. Supported by these tailwinds and bolstered by the capital we are raising, we are well-positioned to expand our footprint as EVs increasingly replace traditional internal combustion engines,” Bonnet added.
Last month, EV charging solutions provider Wallbox Chargers and Kensington Capital Acquisition Corp. II agreed to combine their businesses, converting Wallbox into a publicly listed company.
According to Mercom Capital Group’s latest report, 1H and Q2 2021 Funding and M&A Report for Storage, Grid, and Efficiency, smart charging companies raised $271 million in eight deals in the first half of 2021.
Harsh is a staff reporter at Mercom India. Previously with Indian Express, he has covered general interest stories. He holds a Masters Degree in Journalism from Symbiosis Institute of Media and Communication, Pune.