Fisker, an electric vehicle startup, has become an investor in EV charging provider Allego less than one year after its SPAC merger. Fisker is investing $10 million in PIPE financing for the merger of Allego and Spartan Acquisition Corp III, which was announced on Tuesday and values Allego at $3.14 billion pro forma.
The deal is estimated to bring in $702 million in cash, comprising $150 million in PIPE from the Fisker Company, investors Landis+Gyr, and funds and accounts administered by Hedosophia and ECP, a London-based venture capital firm. The PIPE was also attended by funds run by the Apollo Global Management affiliates as well as Meridiam, Allego’s largest shareholder. Fisker, the PIPE’s only EV automaker, is keen on Allego’s infrastructure. (Apollo is in the course of purchasing Verizon Media Group, including includes TechCrunch.) Over 26,000 charging stations are available across Europe, according to the business.
According to Allego, Fisker and Allego have committed to a “strategic collaboration to supply a choice of charging solutions for Fisker’s clients throughout Europe.” It includes a clause that allows drivers who buy a Fisker Ocean SUV between January 1, 2023, and March 31, 2024, to get a year of free charging on the Allego network. In a second statement, Fisker said that the two firms are working on a “seamless charging experience” for Fisker drivers who use Allego chargers.
Henrik Fisker, CEO of Allego, said, “Allego has long been a pioneer in the quest to develop a flawless pan-European electric vehicle (EV) charging network.” “We invested in the PIPE for strategic and tactical reasons, assuring we have a part in the development of EV charging networks while providing tangible advantages to our customers.”
Fisker Automotive, located in California, hopes to begin deliveries of its Ocean SUV, which is all-electric, in November 2022, but the road to pre-production hasn’t always been easy. Last year’s SPAC merger with Apollo Global Management Inc. raised roughly $1 billion for Henrik Fisker, which is a serial automotive investor best known for designing luxury vehicles such as the Aston Martin V8 Vantage. After big deals with Volkswagen fell through, the startup’s valuation soared to $2.9 billion.
With its electric-car lineup, Fisker has embraced an outsourcing approach. Magna, Inc. has agreed to produce The Ocean on a long-term basis. The company has inked an arrangement with Foxconn, the world’s largest iPhone maker, to create a new electric vehicle under the Fisker brand by the end of 2023.