The proceeds from the deal will give growth capital to e.GO to boost its production, which includes expansion of MicroFactory build-outs
Next.e.GO Mobile (e.GO), a German producer of urban electric vehicles (EVs), has agreed to merge with blank check company Athena Consumer Acquisition (ACAQ) in a deal that values the combined entity at $913m.
Athena Consumer Acquisition is a special purpose acquisition company, which is publicly listed in the US. The merger will enable e.GO to go public with a listing on the New York Stock Exchange (NYSE).
e.GO board chairman Ali Vezvaei said: “The partnership we announced with Athena today is a remarkable milestone in e.GO’s journey.
“This Transaction will allow us to accelerate our growth, expand our global reach, and continue our track record of disruptive innovation.”
Headquartered in Aachen, e.GO develops, designs, manufactures and markets electric vehicles with a focus on convenience, ease of service, practicality, and cost.
The company is said to employ disruptive innovations in the design of vehicles, selection of materials and a battery solution that is smart and flexible. It also takes a decentralised approach to production by combining low capital expenditure and a relatively lesser environmental footprint when compared to other EV manufacturers.
E.GO utilises its in-house manufacturing processes and its proprietary MicroFactory and tech-first IT architecture. This is said to enable the German manufacturer in streamlining the production process and needs less capital spend per unit of output compared to conventional methods.
The company built its first MicroFactory in Aachen in 2018 where it created its battery electric vehicle platform. Subsequently, it started the production of vehicles in the second half of 2021.
So far, e.GO has put more than 1,000 of its urban EVs on the road. It is constructing a second MicroFactory in Southeast Europe, which is expected to break ground by the end of this year.
In a three-shift setting, each of its microfactories can produce nearly 30,000 cars per annum.
Athena Consumer Acquisition board chairman Isabelle Freidheim said: “e.GO has leveraged the lessons learned in the EV car manufacturing space; we believe this allows e.GO to offer customers and investors alike an industry standard setting value proposition.
“e.GO is carving out a successful place in the EV industry for its customers, while at the same time undertaking a compelling reinvention of the manufacturing process.”
The deal is expected to create gross proceeds of up to around $285m of cash for the combined entity. The proceeds will give growth capital to e.GO to ramp up its production, which includes expansion of MicroFactory build-outs.
The completion of the deal is subject to customary closing conditions.