Charging network EVgo is going public via SPAC
EVgo, a big player in electric vehicle charging, said this morning that it's going public via a reverse merger with a special purpose acquisition company (SPAC).
Driving the news: The Los Angeles-based company, which has charging stations in 34 states, expects the deal will bring in $575 million that will "be used to fully fund and accelerate EVgo’s growth strategy and network buildout."
Why it matters: It's the latest of a suite of companies in the electric vehicle and charging space to go public as investors pour money into the sector. ChargePoint, another major charging company, announced a SPAC deal in September.
Quick take: The incoming Biden administration wants to spur a major nationwide EV charging buildout, which could increase investor interest in the company and other charging players.
How it works: EVgo is merging with a recently formed SPAC called the Climate Change Crisis Real Impact I Acquisition Corp., whose co-founders include former NRG Energy CEO David Crane and former senior GE exec Beth Comstock.