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Fisker believes that Ocean is the world’s most sustainable all-electric SUV.
Courtesy of Fisker.
It’s official. Spartan Energy Acquisition is buying California-based electric vehicle maker Fisker in a deal that values the startup at $ 2.9 billion, another $ 1 billion valuation for the ultra-powered alternative fuel space.
Spartan’s market value (ticker: SPAQ) crossed the $ 1 billion threshold last week when the stock rose 55% on news of the possible combination. The transaction will bring more than $ 1 billion in fresh capital to Fisker, the target company, which fully funds the development of Fisker’s electric SUV called Ocean.
Fisker believes that Ocean is the world’s most sustainable all-electric SUV because it is made from recycled materials.
Spartan, the buyer, is a special-purpose acquisition company, or SPAC, founded for the purpose of finding the next big thing. Spartan is controlled by private equity giant Apollo Global Management (APO).
“We are excited to work with Fisker to help achieve their vision of achievable electric transportation,” said Geoffrey Strong, president and CEO of Spartan, in a press release. “Henrik [Fisker] It has an unrivaled and world-renowned design history and is backed by an expert management team with historical careers in the automotive industry. The right team, combined with the deep financial resources provided by this transaction, further position the company to succeed in a rapidly growing industry. “Strong is also a Senior Partner, Co-Director of Infrastructure and Natural Resources at Apollo.
In fact, the EV industry is growing rapidly, thanks in large part to Tesla (TSLA), whose sales are expected to increase more than 40% in 2021 from 2020. EV share prices are growing even faster. . Tesla shares have risen nearly 270% so far this year, making the pioneering EV the world’s most valuable car company.
Telsa is not the only action on the rise. Shares of the Chinese manufacturer of EV NIO (NIO) have also gained around 270% to date. Stock at commercial van company EV Workhorse (WKHS) rose nearly 400%. Electric vehicle transport companies Nikola (NKLA) and Tortoise Acquisition (SHLL) are up approximately 425% and 170%, respectively.
Nikola, like Fisker, went public through an acquisition of SPAC. Tortoise is buying trucker manufacturer EV Hyliion in a similar type of transaction SPAC.
Spartan shares, meanwhile, are up roughly 90% in the year to date, including pre-market earnings on Monday. Around 9 a.m. EST, Spartan shares rose approximately 18% to $ 19.73. Dow Jones Industrial Average futures and S&P 500 futures increased 0.7%.
Fisker’s Ocean expires in 2022 and made its debut at the Las Vegas consumer electronics fair this year.
Write to Al Root at [email protected]
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