Amazon Fleet Management Provider EO Going Public Via SPAC: What Investors Should Know

A leading fleet charging company in Europe announced plans to go public via a SPAC merger Thursday morning.

The SPAC Deal: EO Charging announced a SPAC merger with First Reserve Sustainable Growth Corp FRSG.

The deal values the company at a pro forma enterprise value of $675 million.

Public FRSG shareholders will own 28% of the new company after the merger. Shares of the new company will trade as EOC on the Nasdaq with an expected close in the fourth quarter.

About EO: With over 50,000 electric vehicle chargers deployed in more than 35 countries, EO is a leader for charging solutions for fleet operators in Europe.

Services from the company include charger hardware design, manufacturing, installation, software and services. The company allows fleet managers the ability to monitor their vehicles, manage charging costs and optimize electric vehicle operations.

The company provides services for electric vans, trucks, buses and car fleets.

Customers for EO in Europe include Arrival SA ARVL, Amazon.com, Inc. AMZN, DHL, Tesco and Uber Technologies Inc UBER.

Related Link: EV Manufacturer Arrival Talks SPAC Deal, Benefits Of Business Model

Growth Ahead: Europe is one of the most advanced electric vehicle regions in the world, which could offer continued growth for EO.

EO ranked No. 27 on the FT1000 list of Europe’s fastest-growing companies in 2021. This was the highest position from any company in the region from the electric vehicle sector.

The market size for EO is expected to hit $19.2 billion by the year 2026.

EO has plans in place of U.S. expansion with revenue from the region expected in fiscal 2024.

Financials: EO is estimating fiscal 2021 revenue of $33 million and fiscal 2022 revenue of $101 million. The company sees revenue growing at a compounded annual growth rate of 122% from fiscal 2021 to fiscal 2024.

FRSG Price Action: Shares are up 1.81% to $9.82 Thursday morning.

Photo: Amazon