- The stock price of Climate Change Crisis Real Impact I Acquisition Corporation (NYSE: CLII) has increased by over 45% pre-market today. This is why it happened.
The stock price of Climate Change Crisis Real Impact I Acquisition Corporation (NYSE: CLII) has increased by over 45% pre-market today. Investors are responding to a merger deal.
EVgo Services LLC – the nation’s largest electric vehicle (EV) public fast-charging network in the U.S. and a wholly-owned subsidiary of LS Power – and Climate Change Crisis Real Impact I Acquisition Corporation announced today a definitive agreement for a business combination that would result in EVgo becoming a publicly listed company.
EVgo had met CRIS’s stringent investment criteria, which focus on investments in disruptive energy infrastructure opportunities that are strongly aligned with environmental, social, and governance principles.
Upon closing of the deal, the combined company will be named EVgo Inc. and publicly listed under the symbol “EVGO”. And the deal will further elevate EVgo’s position as an industry-leading builder, owner, and operator of public EV fast charging in the U.S. by funding and accelerating the company’s growth strategy.
Launched in 2010, EVgo is a leader in the transportation electrification space. And through its partnerships with market-leading automakers, fleet and rideshare operators, retail and other site hosts, utilities, governments, and other stakeholders, EVgo has steadily expanded over the last decade to become the largest platform for EV public fast charging in the U.S.
As a technology first-mover, EVgo accelerated the adoption of EVs by providing a reliable and convenient charging experience, close to where drivers live, work and play, for both daily commuters and commercial fleets.
Through its extensive network, powered 100% by renewable electricity, EVgo makes it easier for U.S. drivers to take advantage of the benefits of driving an electric vehicle and reduce greenhouse gas emissions from the transportation sector. And with more than 800 locations in 67 major metropolitan markets across 34 states, EVgo’s network serves a rapidly expanding customer base that currently exceeds 220,000 customers.
The pro forma implied market capitalization of the combined company is $2.6 billion at the $10 per share PIPE subscription price, assuming no CRIS shareholders exercise their redemption rights. And net cash proceeds are estimated to be approximately $575 million, comprised of $400 million from the PIPE and approximately $230 million of cash held in trust by CRIS before any adjustments due to redemptions by CRIS shareholders and payment of deferred underwriting compensation, less transaction expenses.
The proceeds will be used to fuel EVgo’s growth strategy, including the buildout of its charging infrastructure network, and will enhance the company’s position as the market leader in the transition to clean mobility. And LS Power and EVgo management, who together own 100% of EVgo today, will be rolling 100% of their equity into the new company, and is estimated to represent approximately 74% of the company upon transaction close.
EVgo’s leadership will remain in place with Cathy Zoi continuing as Chief Executive Officer of the combined company, overseeing its strategic growth initiatives and expansion. Cathy will work alongside other existing executive team members, including Olga Shevorenkova, Chief Financial Officer, Ivo Steklac, Chief Operating and Chief Technology Officer, and Jonathan Levy, Chief Commercial Officer.
The Board of Directors of the combined company is going to include representation from EVgo, LS Power and CRIS as well as independent directors. David Nanus of LS Power will serve as Chairman and will be joined by Cathy Zoi of EVgo and Beth Comstock, Chief Commercial Officer of CRIS; other Board appointments will be made prior to closing.
The transaction was approved by the EVgo board of directors and the CRIS board of directors. And completion of the proposed transaction is subject to customary closing conditions, including the approval of the stockholders of CRIS, and is expected to occur in the second quarter of 2021.
“Just a few years ago, electric vehicles were considered niche. Today, improved technology, lower costs, greater selection, and a better appreciation for the performance of EVs is increasingly making them the vehicle technology of choice. With that, the need for fast charging is on the rise. An estimated 30% of Americans do not have access to at-home charging, and EVs will be increasingly deployed by fleets to transport goods and people in an environmentally-friendly way. Time is precious for all of us, so a public fast charging option with an expanding footprint like EVgo is essential to meet the rapidly growing needs of EV drivers of all types.”
— Cathy Zoi, Chief Executive Officer of EVgo
“EVgo is a crown jewel in our portfolio, and is one of the LS Power businesses leading the charge toward decarbonization. EVgo’s extensive nationwide network and deep relationships with its customers and other stakeholders create a real competitive advantage for the company, and this business combination, which will both fully fund and accelerate the company’s growth plans, positions EVgo to further strengthen its market-leading position.”
— David Nanus, LS Power’s Co-Head of Private Equity and EVgo Chairman
“Starting from our IPO in September, we set out looking for a purpose-driven company making a meaningful contribution in the fight against climate change that was best in class in its sector. We are excited to have found that company in EVgo. We spent a substantial amount of time conducting extensive due diligence on EVgo, affirming our belief of its enduring first-mover advantage. It has a distinct and highly advantageous owner-operator business model, supported by strategic partnerships with key industry players singularly focused on an essential and growing factor necessary for supporting widespread EV adoption. EVgo’s comprehensive national DC fast charging network capable of charging every type of electric vehicle is unparalleled, and we are proud to be a part of its ongoing success.”
— David Crane, Chief Executive Officer of CRIS
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