EVigo, a wholly owned subsidiary of LS Power that owns and operates public fast chargers for electric vehicles, is a publicly traded company through a merger with special purpose acquisition company Climate Change Crisis Real Impact Eye Corporation The company has reached a deal to become one.
The combined company, which will be listed under the new ticker symbol “EVGO”, will have a market value of $ 2.6 billion. LS Power and Evo Management, which today will roll 100% of all their equity in the company into transactions. After the transaction closes in the second quarter, LS Power will hold a 74% stake in the new combined company.
EVigo has raised approximately $ 575 million in income through a business combination, including $ 400 million in private investment in public equity or PIPE. According to the announcement, investors include Pacific Investment Management Company LLC (PIMCO), funds and accounts are managed by BlackRock, Wellington Management, Neuberger Berman Funds and Van Eck Associates Corporation.
Evago’s leadership will remain intact, with Kathy Zoey continuing as CEO of the combined company.
The deal is the latest in a long string of electric vehicle-related companies to merge with so-called empty check companies, leading to IPOs by the traditional route. Arrival, Canoe, Chargepoint, Fixer, Lordstown Motors, Protra and The Lion Electric Company are some of the companies that have merged with SPACs in the last eight months or announced plans.
The Evo is not a new entry for the electric vehicle industry. The company was founded in 2010 and has spent the better part of the decade growing its infrastructure. Today, EVigo has chargers at more than 800 locations in 67 major metropolitan markets across 34 states. The company has formed several partnerships, including Albertsons, Kröger and Wawa, to locate its chargers in these assets.
EVgo also has deals with automakers such as GM and Nissan, as well as ride-hailing companies Lyft and Uber. In July, GM and EVgo announced plans to add more than 2,700 new fast chargers over the next five years.
While electric vehicles still make up only a fraction of the total cars, trucks, and SUVs on today’s roads, the industry has estimated that the EV market will grow more than 100 times between 2019 and 2040, Evigo said. The funds raised through the public market will be used to accelerate its expansion, according to the company.
“A few years ago, electric vehicles were considered niche,” Evago CEO Kathy Zoey said in a statement. “Today, improved technology, lower cost, greater selection and better appreciation for EV performance are increasingly making them the vehicle technology of choice. With this, the need for fast charging is increasing. “
Zoey mentioned that a public charge would be necessary to meet the needs of an estimated 30% of Americans who do not have access to an increasing number of fleets switching to electric vehicles, along with charging at home.