Tritium, a manufacturer of fast chargers for electric vehicles (EVs) based in Australia’s Brisbane, plans to go public in the US through a merger with a blank cheque company. The deal values Tritium at $1.2 billion (A$1.55 billion), the company said on Wednesday.
Upon closing of the transaction with Decarbonization Plus Acquisition Corporation II (DCRN), the combined company will be named Tritium and is expected to be listed on the Nasdaq under the ticker “DCFC”.
Decarbonization Plus is sponsored by an affiliate of the New York-based PE firm Riverstone Holdings LLC, which has a history of low-carbon investments.
The transaction with the Special Purpose Acquisition Company (SPAC) is expected to provide capital to grow Tritium’s three manufacturing facilities, with investment in a new production facility in Europe, expansion of its Los Angeles site, and further development of its Brisbane facilities.
The transaction is anticipated to generate gross cash proceeds of up to around $403 million (A$520 million), assuming minimal redemptions by DCRN’s public stockholders. The pre-money enterprise value of the combined company is $1.4 billion (A$1.8 billion) at the price of $10 per share, excluding cash to go to the balance sheet.
Tritium’s deal with DCRN didn’t include raising a private placement through a PIPE deal, as is common among SPAC mergers, according to Bloomberg.
“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,” Tritium chief executive officer Jane Hunter said.
Tritium said it is well-positioned to benefit 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 projected to have an average CAGR of more than 25% each year over this period.
Tritium has provided more than 2.7 million high-power charging sessions across 41 countries, delivering over 55 GWh of energy. The company’s intellectual property includes the world’s only fully-liquid-cooled, IP65-rated charger, providing customers with technology that is ingress-protected and sealed from outside elements, thus reducing the total cost of ownership.
Founded in 2001 by e-mobility pioneers David Finn, James Kennedy, and Paul Sernia, Tritium designs, develops, and manufactures proprietary hardware for advanced and reliable fast charging. The company has a two-decade history in advanced power electronics and electric transportation, starting as a developer of technology for solar race cars and other extraordinary projects, like the battery management system for James Cameron’s “Deepsea Challenger” submersible.
The deal also marks the first SPAC merger in Australia, reported The Sydney Morning Herald.