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Xos, a relatively unknown, new electric truck startup, has agreed to go public at a $2 billion valuation, via a SPAC offering, according to reports. The company which had just raised $20M will be acquired in a reverse merger with
NextGen Acquisition Corp. The deal will raise $220M in funding, with investors reportedly includi
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Electric chassis maker Xos Trucks agrees to $575M SPAC merger
Surging investor interest in electric vehicles sets stage to bring startup public 2,097 3 minutes read Xos Trucks is heading for public trading via a reverse merger that expects the company to have a $2 billion valuation. (Photo: Xos Trucks)
Electric truck chassis maker Xos Trucks is going public with blank check backing from a special purpose acquisition company (SPAC). Xos will merge with NextGen Acquisition Corp. at an implied market capitalization of $2 billion.
North Hollywood, California-based Xos will get $575 million raised by NextGen (NASDAQ:NGAC) . NextGen raised $335 million through an initial public offering in which investors gave NextGen a “blank check” to pursue a merger. Another additional $220 million came via a private investment in public equity (PIPE).
Churchill Capital IV (NYSE:
NGAC Stock Gets Big Book of Business
The deal comes as the new administration in Washington is going all-in on EVs. Investors are betting that electric vehicles will benefit from President Joe Biden’s proposed $1.7 billion green energy infrastructure plan, as well as his “Build Back Better” economic policy that focuses on clean energy and manufacturing, providing a boost to U.S. electric vehicle stocks. Biden recently issued an executive order calling for an all-electric federal vehicle fleet.
Unlike other EV-SPAC deals, investors in NGAC stock will be hitching their trailers to a company that is actually manufacturing equipment and has a growing back book of business. Xos vehicles have been deployed in field operations since 2019, with a customer base that includes