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Summary
- Australia-based Tritium plans to go public in the US through a SPAC route.
- The company has signed an agreement with SPAC firm DCRN to get listed on Nasdaq.
- The transaction values the electric vehicle charging station maker at US$1.2 billion.
Australian electric vehicle fast-charger Tritium has decided to go public in the United States through a special purpose acquisition company (SPAC) route, valuing the company at US$1.2 billion (AU$1.55 billion).
The Brisbane-based EV charging station maker has entered into a definitive agreement with Decarbonization Plus Acquisition Corporation II (DCRN), a SPAC firm, to get listed on Nasdaq, Tritium said in a press release on May 26. The company, however, did not provide a timeline for completing the transaction.
SPAC, also called a "blank check company", is a shell company created specifically to raise funds to finance a merger or acquisition opportunity. This is considered a relatively easy path as compared to the traditional IPO process for a public listing, without market or pricing risks.
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Image source: VideoFlow, Shutterstock
The transaction is likely to generate gross proceeds of up to US$403 million (AU$520 million) in cash, assuming minimal redemptions by DCRN’s shareholders. The enterprise value of the combined entity is US$1.4 billion (approximately AU$1.8 billion) at US$10 per share, Tritium said.
The company intends to use capital proceeds to position itself as a technology market leader in the direct current (DC) fast-charging space for electric vehicles. The transaction is also expected to support the expansion of its operations to three global, full-scale manufacturing facilities. The investment will be used to develop a new production facility in Europe, expansion of its Los Angeles site, and further development of the Brisbane facilities.
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As per the company, the boards of both Tritium and DCRN have given nod to the proposed transaction, subject to requisite approval by DCRN’s stockholders and other conditions.
Following the completion of the transaction, the combined entity will be named Tritium and is expected to be listed on NASDAQ and trade under the new ticker symbol “DCFC.”
Deal to fund growth plans, says Tritium CEO Jane Hunter
Tritium Chief Executive Officer Jane Hunter said, “The agreement between Tritium and DCRN is a vote of confidence in Tritium’s vision and market viability as well as the e-mobility industry as a whole. We plan to expand to three global manufacturing facilities, expedite product development, grow our global sales and service operations teams, and so much more.”
“This agreement funds that growth plan, enabling us to expand our business operations, enhance our products, and provide even more services to our customers,” Hunter added.
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About Tritium
Backed by coal entrepreneurs Trevor St Baker and Brian Flannery, Tritium is a DC fast charging manufacturer, with global sales and support services in 41 countries.
Founded in 2001 by e-mobility pioneers David Finn, James Kennedy, and Paul Sernia, the company has established itself as a global market leader in DC fast charging technology. It has delivered over 55 GWh of energy to more than 2.7 million high-power charging sessions across 41 countries.
Given the growing opportunities in the EV sector, the company is expected to derive benefits from accelerating and sustained long-term growth of the global passenger EV market, which is projected to have a compound annual growth rate (CAGR) of nearly 20% through 2040. Global EV charging hardware sales are expected to have an average CAGR of more than 25% each year, over this period.
