Electric vehicle company XL Fleet has announced a deal to merge with Pivotal Investment Corporation (NYSE: PIC), a special purpose acquisitions corporation (SPAC).
The new combined company will be worth around $1 billion and is expected to have approximately $350 million in net clash once the deal is closed.
Pivotal has raised $150 million in PIPE investment from new and existing strategic and institutional investors.
XL Fleet, which is a Boston based company, provides electrification solutions for commercial and municipal vehicles that look to be compatible with Ford and Chevrolet, according to the company’s website.
The company says it has strong demand with a $220 million 12-month sales pipeline and a forecasted revenue of $75 million in 2021.
Pivotal is a blank cheque SPAC company led by CEO John Ledecky who has over 35 years of investment experience. He is also the owner of the NHL's New York Islanders.
There has been a significant rise in SPAC mergers of late with private companies seeming to prefer it as an alternative route to becoming a public company rather than IPO.
The news of the merger has sent Pivotal’s shares surging higher. They closed Thursday’s trading session at $10.60 and are currently trading at $12.70 per share, up 19.98% premarket.
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