(Reuters) - XL Fleet, a company that works on fuel-efficiency solutions for vehicles, said on Friday it will go public through a merger with a blank check company in a deal that will value it at $1 billion.
XL Fleet will merge with Pivotal Investment Corporation II PIC.N, which is backed by Jon Ledecky who is the majority owner of the NHL team, New York Islanders. The combined entity called XL Fleet will list on the New York Stock Exchange under the ticker "XL".
The combined company is expected to receive about $350 million in cash, which includes $150 million from new and existing investors, after the deal closes.
Canaccord Genuity LLC acted as financial advisor to XL while BTIG, LLC is the financial and capital markets advisor to Pivotal.
A blank check company, or special purpose acquisition company (SPAC), is a shell company that uses IPO proceeds, together with debt, to acquire another company, typically within two years. Investors are not notified in advance what the SPAC will buy.
SPACs have emerged as a quick route to the stock market for companies, particularly auto technology startups, concerned about the risk of the lengthy IPO process. In some cases, these companies have also struggled to attract interest from institutional investors such as pension funds and venture capital firms.
Earlier this week, Reuters reported that ChargePoint Inc, one of the world's oldest and largest electric vehicle charging networks, is nearing a deal to go public through a reverse merger with Switchback Energy Acquisition Corp SBE.N.
Reporting by Madhvi Pokhriyal in Bengaluru; Editing by Shailesh Kuber
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