Electric vehicle charging network ChargePoint officially announced Thursday that it will go public through a reverse merger with Switchback Energy Acquisition Corp (NYSE: SBE). The deal would value Campbell, California-based ChargePoint at more than $2 billion.
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The transaction includes $225 million in upsized private investment in public equity (PIPE) at $10 per share, according to the company in a written statement. In early afternoon trading, Switchback was trading at $12.91 per share.
Approximately $493 million in net proceeds is expected to help expand ChargePoint’s reach in North America and Europe, add to its technology portfolio and significantly scale its commercial, fleet and residential businesses ahead of the anticipated introduction of an increasing number of new EV models and rising EV penetration, the company said.
ChargePoint President and CEO Pasquale Romano, and the existing leadership team, will lead the combined company.
Last week, we shared a Reuters report that said Switchback, based in Dallas, was created in 2019 as a special-purpose acquisition company, aka SPAC, and raised $300 million in its IPO.
In August, we reported on ChargePoint’s $127 million Series H extension round of funding that gave the company a total of $660 million in funds raised since its inception in 2007, according to Crunchbase data.
ChargePoint is the latest to join a long line of startups choosing to go public via SPACs. Last week, we reported that 2020 seems to be the “year of the SPAC.”
Illustration: Li-Anne Dias