Fisker CEO Henrik Fisker reviews the Fisker Ocean electric SUV compared to Tesla products.
DETROIT – Electric car maker Fisker will release a merger with a blank check company backed by alternative investment manager Apollo Global Management Inc to a valuation of $ 2.9 billion, the companies said Monday.
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Reuters reported last week that the special-purpose acquisition company, Spartan Energy Acquisition Corp, was leading a bidding war between the blank check companies for Fisker. A blank checking company is a shell company that raises money through an IPO to buy an operating company, usually within two years.
SPACs have been behind some of the highest-profile public listings for the past 12 months, including electric vehicle startup Nikola Corp, which went public last month as investors place bets on which startup will be next. Tesla Inc.
Nikola’s shares have risen more than 60 percent since its debut, and Tesla’s shares have quadrupled this year. Chinese SUV maker Li Auto unveiled a US IPO last week.
“In electrification, we could have played on buses or trucks, but the auto part is a fast-growing market,” Geoffrey Strong, Spartan president and CEO and co-director of infrastructure and natural resources at Apollo, told Reuters. .
“While there is room for several brands, we believe Fisker and Tesla will be at the forefront of the pure gaming car and SUV segment of the electric vehicle market in the coming years.”
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The agreement with Fisker, which will close in the fourth quarter, will provide Fisker with $ 1 billion in gross revenue, including $ 500 million from funds from existing and new investors such as AllianceBernstein and BlackRock Inc.
| Heart | Security | Latest | Change | Change% |
|---|---|---|---|---|
| APO | GLOBAL APOLLO MGMT | 49.20 | -0.89 | -1.78% |
| BLK | BLACKROCK INC. | 552.56 | -1.52 | -0.27% |
| MGA | INTERNATIONAL MAGNA | 45.75 | -0.10 | -0.22% |
| AB | ALLIANCEBERNSTEIN HOLDING | 27.07 | +0.16 | + 0.59% |
Proceeds will be used to bring the company’s Fisker Ocean SUV to market by the end of 2022.
Fisker Chief Executive Henrik Fisker, an Aston Martin designer who launched his last company in Los Angeles in 2016, said he chose Apollo after speaking to a number of SPACs because of his strong financial brand, global reach and experienced management. .
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“Obviously we are very excited to obtain full financing to start production,” he said in a telephone interview.
Fisker said the startup is in talks with other companies, including Magna International, about building the SUV. Magna declined to comment. Fisker is also talking to other automakers about the use of their hardware, including vehicle platforms, engines, battery packs, air conditioning, and other parts, while Fisker focuses on design, software, and the digital consumer experience. .
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“It really is not smart for any EV startup to try to make their own factory,” he said. “We are using the Apple model more, where someone else makes their phones.”
In slides presented to investors, Fisker and Spartan said they are in talks to build the SUV on Volkswagen AG’s MEB electric vehicle platform to accelerate the vehicle to market and save on development costs. They also said that the manufacturing strategy could include a European factory.
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Fisker also has a memorandum of understanding for Cox Automotive to handle Fisker’s vehicle repairs, logistics and storage, Fisker said. Cox had no immediate comment.
His previous auto company, Fisker Automotive, filed for bankruptcy in 2013 after burning $ 1.4 billion in private investment and taxpayer-financed loans.
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