UK Electric Vehicle Charging Startup Inks SPAC Deal
EO Charging Valued at $675 Million
EO Charging, a UK electric vehicle charging company, is going public via a SPAC deal with First Reserve Sustainable Growth (FRSG). EO Charging provides the power to Amazon’s (AMZN) UK EV delivery fleet. The deal, which values EO at $675 million, will net it over $150 million in cash.
EO Charging, which started in 2014, has about 50,000 chargers located in 35 countries across the world. In addition to Amazon, it counts Tesco (TSCDY) and Uber Technologies (UBER) as customers. The company is going after the commercial EV market, offering customers a full suite of services including hardware installation, software, and maintenance services. It has roughly 130 employees and was EBITDA positive in 2020.
EO Looks to Expand
EO’s main European markets currently include the UK, Ireland, and Norway, but it has plans to expand further in Europe. Its contract with Amazon spans several European countries including Germany and Spain.
The company and its investors are banking on a big push by governments, politicians, and business leaders for the electrification of vehicles to fuel strong growth. Last week, President Biden called for half of all vehicles made in the US by 2030 to be electric. Other countries have ambitious adoption-rate goals as well. Once EO saturates the European market with its chargers, it plans to expand in the US and other overseas markets.
EV SPAC Deals Abound
EO’s merger deal with First Reserve is slated to close during the fourth quarter, with the company trading on the Nasdaq under the ticker “EOC.” It is among a growing list of EV startups to ink deals with SPACs. Other EV companies to ink SPAC deals include ChargePoint (CHPT), which announced a SPAC deal last fall at a valuation of $2.4 billion, and EVgo (EVGO), which inked a SPAC deal in January which valued it at $2.6 billion.
SPACs are still trending, with deals happening at a steady pace. Green companies, especially EV- focused ones, are getting a lot of attention. It will be interesting to see which one will be next to go public via a SPAC.
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