The SPAC deal enables the Dutch firm to go public in the US
An Allego ultra-fast charging location. (Credit: Business Wire)
Allego, a pan-European electric vehicle (EV) charging network, has agreed to merge with Spartan Acquisition Corp. III, a special purpose acquisition company (SPAC), in a deal that values the combined entity at nearly $3.14bn.
The deal with the Apollo Global Management-backed SPAC will enable the Netherlands-based Allego to become a publicly listed company. Post-merger, the enlarged company will trade on the New York Stock Exchange (NYSE).
Established in 2013, the company has installed more than 26,000 charging ports at 12,000 public and private locations, spread across 12 countries in Europe. Its charging network includes fast, ultra-fast, and AC charging equipment.
The charging solutions, which serve electric cars, motors, buses, and trucks, are connected to the company’s EV-Cloud platform. EV-Cloud is a customer payment tool that offers essential services to owned and third-party customers.
In May 2018, the EV charging company was acquired by sustainable infrastructure developer and investor Meridiam, which will have a stake of 75% post-merger.
Allego CEO Mathieu Bonnet said: “We are excited to announce our strategic partnership with Spartan, which will provide capital to accelerate our leadership position within the European charging market, all while maintaining a strong financial position throughout the growth phase.
“Europe has one of the largest populations of EVs in the world, which is continuing to grow at a greater pace than many other major growth markets, including the United States. Supported by these tailwinds and bolstered by the capital we are raising, we are well positioned to expand our footprint as EVs increasingly replace traditional internal combustion engines.”
The deal will give the EV charging company gross proceeds of nearly $702m. Included in these is $552m of cash held in trust by Spartan.
The remaining amount of $150m will be through a private investment in public equity (PIPE). Hedosophia and funds and accounts managed by ECP, and Allego’s strategic partners such as Fisker and Landis+Gyr, and others are among the PIPE investors.
The proceeds will be used for funding the capital expenditure needed for EV stations and for general corporate purposes.
Spartan chairman and CEO and Apollo Global Management infrastructure and natural resources co-lead Geoffrey Strong said: “We are excited to work together with Mathieu, Meridiam and the entire Allego team.
“We believe Europe is an extremely attractive market for EV charging and Allego is well-positioned to capitalize on its innovative technology, a strong leadership position in Europe, and supportive macro trends buoying the EV charging market.”
The merger, which is subject to Spartan stockholders’ approval and other customary closing conditions, is expected to close in Q4 2021.