EVgo, one of the largest fast charging networks in the U.S., announced a definitive agreement for a business combination with Climate Change Crisis Real Impact I Acquisition Corporation, a special purpose acquisition company already publicly traded on NYSE (CLII).
It's amazing how quickly the SPAC's are spreading in the EV industry. Just a few months ago we saw that ChargePoint is also going public through SPAC.
EVgo was founded in 2010 by NRG, but then sold to Vision Ridge Partners in 2016. In early 2020, the company was acquired by LS Power and soon it will be publicly listed.
At the current stage, EVgo has more than 800 charging locations in 67 major metropolitan markets across 34 states. The number of customers exceeds 220,000, which is some 40,000 more than a year ago (over 180,000).
According to the transaction overview, the combined company will be evaluated at $2.6 billion (100% of EVgo shares will translate into 74% of the combined company) and net cash proceeds are estimated to be approximately $575 million.
The company intends to use the money to further expand the network. We must remember that EVgo also has a deal with GM to add more than 2,700 individual new fast chargers in the next five years (2021-2025).
"The pro forma implied market capitalization of the combined company is $2.6 billion at the $10 per share PIPE subscription price, assuming no CRIS shareholders exercise their redemption rights. Net cash proceeds are estimated to be approximately $575 million, comprised of $400 million from the PIPE and approximately $230 million of cash held in trust by CRIS before any adjustments due to redemptions by CRIS shareholders and payment of deferred underwriting compensation, less transaction expenses.
Proceeds will be used to fuel EVgo’s growth strategy, including the buildout of its charging infrastructure network, and will enhance the company’s position as the market leader in the transition to clean mobility. LS Power and EVgo management, who together own 100% of EVgo today, will be rolling 100% of their equity into the new company, and is estimated to represent approximately 74% of the company upon transaction close."