EV Charging Infrastructure Leader Tritium Lands SPAC Deal: What Investors Should Know

Another electric vehicle charging infrastructure company is going public via a special purpose acquisition company merger. This company has more than 20 years experience and market leadership positions in three territories.

The SPAC Deal: Tritium is going public with Decarbonization Plus Acquisition Corporation II DCRN in a SPAC merger valuing the company at $1.2 billion.

Shares of Tritium will trade as "DCFC" on the Nasdaq if the merger is approved. Current DCRN shareholders will own 24% of the new company after the merger.

About Tritium: Tritium says it is the only pure-play, DC fast charging manufacturing company with a global sales and support reach. The company has a presence in 41 countries across four continents.

Tritium has provided 2.7 million charging sessions in its lifetime and sold more than 4,400 DCFC chargers.

According to the company’s presentation, Tritium holds a 15% market share in the United States, 20% market share in Europe and 75% market share in Australia/New Zealand. The company derives 70% of revenue from Europe, 20% from the United States and 10% from Australia/New Zealand.

Related Link: Charging Infrastructure SPAC Plays: Is EVGo The Best Of The Bunch? 

Tritium's Growth Projections: The SPAC merger is expected to help Tritium in its growth plan of expanding facilities with a new manufacturing plant in Europe.

Tritium has several partnerships with blue chip customers and said it intends to continue growth through partnerships in the fleet segment and licensing agreements.

Electric vehicle sales are expected to grow at a compounded annual growth rate of 19% from 2020 to 2040. Electric vehicle charging hardware sales are seen growing 25% annually from 2020 to 2026, according to the company.

Tritium said it has 17 new products to launch and plans to grow with entries into new countries and adjacent segments.

Financials: Tritium had revenue of $59 million in fiscal 2020. The company is guiding for revenue to hit $84 million in fiscal 2021 and more than $1 billion by 2026.

The company sources over 90% of revenue from chargers. In the future, the company said it hopes to see growing revenue for services and software.

Tritium is projecting positive EBITDA in fiscal 2023.

DCRN Price Action: Shares of Decarbonization Plus Acquisition Corporation II were up 1.92% at $9.84 at last check Wednesday.