ChargePoint, one of the first and largest electric-vehicle recharging networks, said on Thursday that it will go public via a merger with special-purpose acquisition company Switchback Energy Acquisition (NYSE:SBE).
The proposed deal values ChargePoint at $2.4 billion and is expected to close by the end of 2020. Reuters reported last week that the two companies were considering a merger.
The deal follows the broad pattern of other recent deals involving electric-vehicle start-ups and special purpose acquisition companies, or SPACs, that have drawn intense interest from auto investors in 2020. As in the deal that took electric-truck start-up Nikola public in June, the ChargePoint deal includes a so-called PIPE: “public investment in private equity.”
PIPE investors agree in advance to invest a set amount in exchange for stock at a set price, typically discounted. The ChargePoint deal includes a $225 million PIPE, with investments from institutional investors including Baillie Gifford