Energy

Bill Gates-backed Heliogen to go public through $2 bln SPAC deal

2 minute read

Bill Gates, Co-Chair of Bill & Melinda Gates Foundation arrives at the Elysee Palace in Paris, France, April 16, 2018. REUTERS/Charles Platiau

Register now for FREE unlimited access to reuters.com

July 7 (Reuters) - Bill Gates-backed solar power firm Heliogen Inc will merge with a special-purpose acquisition company (SPAC) to go public in a deal that values the combined entity at about $2 billion, the companies said on Wednesday.

The merger with Athena Technology Acquisition Corp (ATHN.N), a women-led SPAC that raised $250 million in its initial public offering in March, will generate $415 million of proceeds for the combined company.

The proceeds include a $165 million private investment in public equity, or PIPE, from investors such as Morgan Stanley's investment arm Counterpoint Global, Salient Partners and Saba Capital.

Register now for FREE unlimited access to reuters.com

The SPAC is led by Chief Executive Officer Phyllis Newhouse, a retired military officer and cybersecurity veteran, and venture capitalist Isabelle Freidheim, who also co-founded fintech firm Magnifi.

SPACs use the pool of capital they raise through their own initial public offerings to merge with a private company, in a deal that then takes it public.

Heliogen's SPAC deal comes at a time when U.S. solar installations are on track for record-breaking growth over the next three years, according to an industry report released last month.

But the solar industry faces challenges from supply chain bottlenecks and a tight labor market that could lead to slower growth, even as governments ramp up their efforts to fight climate change. read more

Post-merger, the combined company will be listed on the New York Stock Exchange under the symbol "HLGN".

Register now for FREE unlimited access to reuters.com
Reporting by Niket Nishant in Bengaluru; Editing by Aditya Soni

Our Standards: The Thomson Reuters Trust Principles.

More from Reuters