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By Ishika Dangayach, 1:30 pm ET - Tritium has decided to go public in the United States via a merger with a blank-check corporation, valuing one of the world's leading electric car charging station manufacturers at $1.2 billion, the business said on Wednesday.
The Australian-based company will receive up to $403 million in gross proceeds from its merger with Decarbonization Plus Acquisition Corp II, a special purpose acquisition company (SPAC).
Unlike most SPAC mergers, Tritium's merger with Decarbonization Plus II did not include a private placement.
Tritium only needs roughly $70 million to break even in terms of cash flow, according to Robert Tichio, chairman of the blank-check firm, in an interview. While there were discussions of raising a placement, or PIPE, the proposal was eventually vetoed, he said. “I think it became clear that the PIPE market’s overwhelmed the strength of anyone good opportunity,” Bloomberg reported.
The company develops charging software and hardware, such as electric pumps the size of big refrigerators, that are used at shopping malls and highway rest areas in almost 40 countries.
“The agreement between Tritium and DCRN is a vote of confidence in Tritium’s vision and market viability as well as the e-mobility industry as a whole,” Tritium Chief Executive Officer Jane Hunter said, in a statement. “We plan to expand to three global manufacturing facilities, expedite product development, grow our global sales and service operations teams, and …… enhance our products, and provide even more services to our customers.”
Tritium will be the merged company's name, and it is anticipated to be listed on the NASDAQ under the new ticker symbol DCFC.
Former Boeing executive Jane Hunter will continue to serve as Tritium's CEO, while Credit Suisse acted as the only financial advisor to a shareholder consortium that owns a strong majority and control stake in Tritium, while JPMorgan and Citigroup acted as financial advisors to SPAC.
Picture Credits: Bloomberg