Electric truck manufacturer Xos will go public with a backdoor valuation of US$2 billion

According to foreign media reports, electric commercial vehicle manufacturer Xos has agreed to merge with NextGen Acquisition Corp., a blank check company.

(Image source: Xos )

The founders of NextGen Acquisition are George Mattson, a former Goldman Sachs Group banker, and Gregory Summe, a former executive of Carlyle Group (one of the world's largest private equity funds, Carlyle Group). The company raised $375 million through an initial public offering last fall. In this transaction, Bank of America advised Xos, and Goldman Sachs, Rothschild and Credit Suisse provided advice to NextGen.

The two companies stated that the combined equity value of the transaction is US$2 billion and will provide the company with a total income of US$575 million. To support this transaction, the special purpose acquisition company (SPAC) will raise $220 million from investors, including a group of truck dealers led by Janus Henderson Group and Thompson Truck Centers.

Xos’ customers include United Parcel Service, Loomis AB, an armored vehicle service company, and Lonestar, a transportation company. Xos co-founder and CEO Dakota Semler said in an interview that the Los Angeles-based company has also established partnerships with other distribution partners, but it has not yet been announced. Semler said that California and other states are phasing out fuel vehicles, which will help increase market demand for commercial electric vehicles such as Xos. Semler said: 'Fleet operators have to start planning for this and start to make changes.'

As start-ups seek to expand their scale and raise cash to help with product development and gain an advantage in the increasingly competitive electric vehicle sector, many electric vehicle manufacturers have reached agreements with SPACs. Not long ago, Lion Electric Inc., another electric truck manufacturer, also announced that it will be listed through SPAC this year.

According to reports, in the field of consumer cars, Lucid Motors is also about to announce a deal with SPAC, the company is one of the most mature electric car companies on this road.