A leading Pan-European charging company for electric vehicles announced a SPAC deal Wednesday with plans to continue expansion in the fast-growing market.
The SPAC Deal: Allego announced a SPAC deal with Spartan Acquisition III Corp SPAQ. The deal values the company at an enterprise value of $2.65 billion.
A PIPE of $150 million includes investments from Hedosophia and Fisker Inc FSR.
The company will trade on the NYSE under the symbol "ALLG" after the merger. Public SPAQ shareholders will own 18% of the company after the merger.
About Allego: With more than 26,000 public charging ports in over 12,000 locations in 12 European countries, Allego is a leader in the market.
The company currently totals 733 fast chargers and 54 ultra-fast chargers, ranking the company as the leader in fast chargers in Europe, according to the presentation.
The company offers public and private charging solutions and has partnerships with more than 50 real estate partners and 15 OEMs.
Partners mentioned in the presentation include Nissan, Carrefour, Shell and McDonald’s Corp MCD.
Allego chargers work with all-electric vehicle brands and cover light vehicles, vans and electric trucks.
The company uses a proprietary suite of software to provide uptime optimization and select the best premium charging locations.
Allego EV Cloud allows customers payment options to third-party customers, which could help the company land additional partnerships.
Related Link: Fisker Shares Rally On $30,000 EV Partnership With Foxconn
Growth Ahead: The European electric vehicle market is around twice the size of the U.S. market. Europe is expected to see 46% compounded annual growth from 2020 to 2025, hitting 20 million vehicles by 2025.
Europe has passed stringent CO2 regulations for vehicles and is expected to continue to target this market.
Allego has a backlog that includes 500 secured premium sites representing around 2,820 ports and a pipeline of an additional 500 sites representing 3,070 ports. Nissan and Shell are included in these figures with contracts for additional chargers.
Allego plans to continue its partnership with companies and fleets.
The company will also focus on growing its network of fast-charging and ultra-fast charging locations to maximize utilization and gross margins.
Financials: In 2020, Allego had gross margins of 29% and revenue of 50 million euros.
The company is forecasting revenue of 86 million euros and 161 million euros for fiscal 2021 and fiscal 2022, respectively.
The company sees its charging revenue growing at a compounded annual average of 107% from fiscal 2021 to fiscal 2026. Services revenue is expected to grow at a compounded annual average of 39% over the same period.
SPAQ Price Action: SPAQ shares are up 1.76% to $9.86 on Wednesday.
Related Link: Want to learn more about SPACs? Go to Benzinga's YouTube channel for the "SPACS Attack."
Photo: Courtesy of Allego
Disclosure: Author is long FSR shares.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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