BY Richard Summerfield
EVgo Services LLC, the wholly owned subsidiary of LS Power that owns and operates public fast chargers for electric vehicles, is to become a publicly traded company through a $2.6bn merger with special purpose acquisition company (SPAC) Climate Change Crisis Real Impact I Acquisition Corporation.
The deal is expected to provide EVgo with around $575m in net cash proceeds, including $400m from investors such as Pacific Investment Management Co LLC (PIMCO), BlackRock Inc and Wellington Management, among others.
“Just a few years ago, electric vehicles were considered niche,” said Cathy Zoi, chief executive of EVgo. “Today, improved technology, lower costs, greater selection, and a better appreciation for the performance of EVs is increasingly making them the vehicle technology of choice. With that, the need for fast charging is on the rise.
“An estimated 30% of Americans do not have access to at-home charging, and EVs will be increasingly deployed by fleets to transport goods and people in an environmentally-friendly way,” she added. “Time is precious for all of us, so a public fast charging option with an expanding footprint like EVgo is essential to meet the rapidly growing needs of EV drivers of all types.”
“EVgo is a crown jewel in our portfolio, and is one of the LS Power businesses leading the charge toward decarbonization,” said David Nanus, co-head of private equity at LS Power and chairman of EVgo. “EVgo’s extensive nationwide network and deep relationships with its customers and other stakeholders create a real competitive advantage for the company, and this business combination, which will both fully fund and accelerate the company’s growth plans, positions EVgo to further strengthen its market-leading position.”
EVgo has chargers in more than 800 locations in 67 major metropolitan markets across 34 states in the US. The company has landed a number of partnerships, including with Albertsons, Kroger and Wawa to install its chargers.
The company has also agreed deals with car manufacturers such as GM and Nissan, as well as ride-hailing companies Lyft and Uber. In July, GM and EVgo announced plans to add more than 2700 new fast chargers over the next five years. Though electric vehicles are still niche, they are expected to experience significant growth in the coming years.
News: EV charging network EVgo to go public via $2.6 billion SPAC deal