Electric truck maker Xos to trail public via $2 bln SPAC merger

(Reuters) – Xos Inc, an electric commercial automotive maker, on Monday agreed to trail public by a merger with clean-test firm NextGen Acquisition Corp, in a deal valuing the blended entity at $2 billion.

The deal will present Xos with $575 million in spoiled proceeds, including a $220 million deepest investment led by Janus Henderson Customers and a consortium of truck sellers led by Thompson Truck Providers and products.

Reuters reported earlier this month that Xos turned into as soon as nearing a deal to trail public with NextGen.

Xos frequently is the latest company rising an electric truck to trail public by a merger with a SPAC, following the likes of Nikola Corp and Lion Electric Co.

North Hollywood, California-primarily based Xos, which rebranded itself from Thor in 2019, builds electric autos designed to replace the same diesel vans. Its prospects include bundle shipping United Parcel Service Inc and cash-going by firm Loomis.

NextGen, a distinct goal acquisition company (SPAC), raised $350 million by an initial public providing (IPO) final 300 and sixty five days. The SPACs piece were up 3.2% in premarket alternate.

SPACs are shell firms which elevate funds in an IPO to gain a deepest company. SPACs present firms with an alternative route to enter public markets and hold acquired repute amongst Wall Avenue traders in fresh times.

The blended entity will more than most likely be listed on the Nasdaq below the emblem “XOS” after the merger.

BofA Securities and Goldman Sachs & Co LLC are serving as outlandish financial advisers to Xos and NextGen, respectively.

Reporting by Sohini Podder in Bengaluru

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