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EVBox To Become Public Through SPAC Deal With TPG

EVBox, a subsidiary of the French multinational ENGIE, will be acquired by the publicly traded blank check company, TPG Pace, to go public. EVBox and TPG Pace entered into a definitive agreement for a combination of cash and equity.

The business merger values EVBox at around $969 million implied enterprise value. Following the closing, the newly merged entity is estimated to have a total pro-forma equity value of $1.4 billion. Shares of TPG Pace shot 116% post-market after it agreed to buy EVBox.

EVBox – A Growing Solution For EVs

Founded in 2010, EVBox is a worldwide provider of charging solutions for electric vehicles (EV). The company offers a wide variety of installed base of charging solutions along with advanced cloud-based offerings with over 190,000 charge ports across 70 countries. The combination of both hardware and software solutions drive the company’s growth.

The electric utility company, ENGIE had acquired EVBOX as a part of its refocus on renewables and clean technology in 2017.  The deal with TPG will further widen EVBox’s reach internationally, specifically in North America and Europe. The increasing trend of adopting electric vehicles globally will benefit the company through its wider technology portfolio.

A Glance At EVBox’s Balance Sheet Post The Deal

Post the transaction, EVBox will have cash of $425 million on its balance sheet which would also consist of TPG Pace’s fully committed Private Investment in Public (PIPE) of $225 million, TPG Pace’s Forward Purchase Agreements of $100 million, and around $350 million of cash held in TPG Pace’s trust account. The PIPE was raised through investors including Wellington Management, funds managed by BlackRock and Neuberger Berman, and Inclusive Capital Partners.

ENGIE will retain around 40% share in the company and will continue to engage as a key partner in the firm.

What’s In It For TPG Pace?

On the other hand, TPG Pace, a special purpose acquisition company (SPAC) formed by TPG, has quite a history of evaluating and helping high-growth technology companies to go public successfully. According to the President, Michael MacDougall, TPG Pace had been following the sector and realized the potential of growth for charging solutions across the world.

TPG Pace invested research and efforts along with Y Analytics to conclude that EVBox was a one-of-a-kind opportunity considering the positive environmental impact over the next five years. TPG Pace has been interested in assisting firms with a high drive for environmental, social, and corporate governance (ESG) practices.

Over the past 10 years, TPG has successfully taken 55 companies public from private. In 2015, TPG Pace was formed to sponsor SPACs and has concluded five SPAC IPOS to date. Previously, TPG Pace raised $350 million in an IPO in October with the aim of acquiring a company that had strong ESG practices.

EVBox Group

The newly merged company will be called EVBox Group. The common shares and warrants will be listed on the New York Stock Exchange under the ticker symbol “EVB” and “EVB WS” respectively. EVBox Group is expected to be listed on the stock exchange by late Q1, 2021.

Looking at the solution providers for electric vehicles, numerous companies have adopted the SPAC approach to go public. These include ChargePoint, Fisker, Nikola, Arrival, and Velodyne Lidar.

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