German battery charging firm ADS-TEC Energy to list in US via SPAC merger

German battery charging company ADS-TEC Energy GmbH is set to go public in the US after agreeing to merge with special purpose acquisition company European Sustainable Growth Acquisition Corp (NASDAQ:EUSG) in a deal giving the combined entity a pro forma market value of USD 580 million (EUR 495m).

Nuertingen-based ADS-TEC Energy develops lithium-ion technologies, energy storage solutions and fast charging systems. ADS-TEC Holding, a vehicle of the family of CEO Thomas Speidel, holds a 61% stake in the battery charging firm, with the remainder being held by German heating products supplier Bosch Thermotechnik.

The planned transaction involves a USD-156-million private investment in public equity, or PIPE, at USD 10 per share from Dutch pension fund APG, US Invesco, Swedish sustainable infrastructure investor Polar Structure and SwedbankRobur as well as by the owners of ADS-TEC Energy and the blank-check firm.

A large part of the proceeds from the deal will go for the further development of the German company's charging platforms and for the expansion of its business into the US and Europe.

The deal is seen to be finalised in the fourth quarter of 2021, subject to approval by the SPAC's shareholders, among other customary closing conditions.

After completion, the merged entity will continue trading on the Nasdaq stock exchange.

The SPAC's sponsors include chairman Lars Thunell as well as co-chief executives Pieter Taselaar, Matheus Hovers and Karan Trehan. EUSG went public in early 2021 after a USD-125-million initial public offering (IPO).

(USD 1 = EUR 0.853)

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