Electric car maker Fisker will go public through a SPAC deal with a valuation of $ 2.9 billion.

(Reuters) – Electric car maker Fisker will publish a merger with a blank checking company backed by private equity firm Apollo Global Management Inc to a valuation of $ 2.9 billion, the companies said Monday.

Reuters reported last week that special-purpose acquisition company Spartan Energy Acquisition Corp (SPAQ_u.N), was leading a bidding war between the blank check companies for Fisker.

Spartan shares rose 19.4% in premarket trading.

The deal will provide Fisker with $ 1 billion in gross revenue, including $ 500 million in funds from existing and new investors such as AllianceBernstein and BlackRock Inc.

Proceeds will be used to bring the company’s first product, the Fisker Ocean, to production in late 2022.

Henrik Fisker, a former Aston-Martin designer, launched the Los Angeles-based eponymous company in 2016, and plans to start selling the Fisker Ocean luxury electric SUV at a starting price of $ 37,500.

“The prototype vehicles are expected to begin durability testing by the end of this year,” Fisker said in a statement.

His previous auto company, Fisker Automotive, filed for bankruptcy in 2013 after burning $ 1.4 billion in private investment and taxpayer-financed loans.

A SPAC uses the proceeds from its IPO, along with borrowed funds, to acquire a business, usually within two years.

SPACs have been behind some of the highest-profile public listings for the past 12 months, including Nikola Corp, which went public last month, as investors bet on which startup will be the next Tesla Inc.

Nikola’s shares have risen more than 60% since its debut.