EV Charger Maker Tritium Going Public in SPAC Merger Deal
Tritium, which makes fast chargers for electric vehicles, has reached an agreement to go public through a merger with blank-check company Decarbonization Plus Acquisition Corp. II, according to people with knowledge of the matter.
The deal with the special purpose acquisition company, or SPAC, values Tritium at $1.2 billion, the people said, asking not to be identified because the information was private. The transaction is expected to generate proceeds of about $400 million, said the people.
Unlike most SPAC mergers, Tritium’s combination with Decarbonization Plus II didn’t include raising a private placement, the people said.
Representatives for Tritium and Decarbonization Plus II declined to comment.
Brisbane, Australia-based Tritium produces charging software and hardware -- including electric pumps the size of large refrigerators -- deployed at shopping malls to highway rest stops in almost 40 countries, and has supplied networks being rolled out by Volkswagen AG and Ford Motor Co. The firm’s fastest units can add about 217 miles of driving range in 10 minutes of charging, according to the company.
Founded in 2001 by members of a solar-car racing team, the company promoted ex-Boeing Co. executive Jane Hunter to chief executive officer in 2020, and has expanded beyond Australia to add design and manufacturing facilities in California and Europe. Tritium announced last month that it was selected by the U.S. Army to help its efforts to convert its vehicles -- including combat vehicles -- to electric power.
Read more: Fastest Electric Car Chargers Waiting for Batteries to Catch Up
Adding electric car charging infrastructure is seen as vital for automakers to spur sales, and crucial to governments as they seek to phase out combustion engine vehicles to help meet climate targets. President Joe Biden has flagged plans to spend billions of dollars on tax credits and charging stations to support the transition away from gas-powered cars.
Rival supplier ABB Ltd. said last month that it plans to carve out its electric vehicle charging business into a separate legal structure and prepare the unit for a potential listing.
The Decarbonization Plus SPAC is backed by an affiliate of Riverstone Holdings LLC. It raised $402.5 million including so-called greenshoe shares in an initial public offering in February.Read more