ChargePoint Inc., a single of the world’s oldest and greatest electric powered vehicle charging networks, is nearing a deal to go community through a reverse merger with Switchback Power Acquisition Corp, people common with the matter said on Wednesday.
The deal for ChargePoint could value the enterprise at far more than $2 billion and be declared as early as subsequent 7 days, the people said, cautioning that talks could nevertheless collapse and terms may possibly nevertheless transform.
The people requested anonymity as the matter is personal. ChargePoint declined to comment. Switchback did not quickly respond to requests for comment.
Campbell, Calif.,-centered ChargePoint, launched in 2007, last month shut on a $127 million funding spherical which valued the enterprise at $1.37 billion, according to PitchBook details.
ChargePoint has captivated funding from both of those personal venture buyers and significant strategic buyers, together with German automakers Daimler and BMW and the venture arm of oil enterprise Chevron Corp.
Switchback Power is a distinctive-goal acquisition enterprise which raised $three hundred million in an original community supplying in July 2019.
A SPAC is a shell enterprise that works by using IPO proceeds, alongside one another with debt, to obtain a different enterprise, usually in two several years. Investors are not notified in progress what the SPAC will buy.
SPACs have emerged as a rapid route to the inventory market for companies, especially auto technology startups, concerned about the danger of the prolonged IPO course of action. In some situations, these companies have also struggled to draw in fascination from institutional buyers these as pension money and venture money firms.
Investors also look for to echo the surging inventory selling price of Tesla Inc, the major electric powered vehicle enterprise.
Electric industrial truck maker Nikola Corp went community earlier this calendar year through a SPAC merger even though electric powered carmaker Fisker has agreed to a reverse merger with Spartan Power Acquisition Corp.