EVgo Goes After $2.6B SPAC Deal, Shares Soar

Sarah Favot

Favot is an award-winning journalist and adjunct instructor at USC's Annenberg School for Communication and Journalism. She previously was an investigative and data reporter at national education news site The 74 and local news site LA School Report. She's also worked at the Los Angeles Daily News. She was a Livingston Award finalist in 2011 and holds a Master's degree in journalism from Boston University and BA from the University of Windsor in Ontario, Canada.

EVgo Goes After $2.6B SPAC Deal, Shares Soar
Photo by Ernest Ojeh on Unsplash

Electric vehicle charging station provider EVgo is going public, joining a wave of companies in the electric vehicle industry hoping to ride on Tesla's soaring stock growth over the last year.

The Los Angeles-based startup, which operates a nationwide fast-charging network for electric vehicles, announced Friday it's going public through a merger with a special purpose acquisition company that will generate about $575 million in net proceeds.


The deal with the SPAC, Climate Change Crisis Real Impact I Acquisition Corp., values EVgo at $2.6 billion. Shares shot up more than 66% on the news.


The injection of funds will be used to help EVgo grow its charging infrastructure network and, "will enhance the company's position as the market leader in the transition to clean mobility," the company said.

Last summer, the company struck a deal with General Motors to create a nationwide EV charging infrastructure buildout. Under the agreement, EVgo will add more than 2,700 faster chargers over the next five years. Uber and Lyft also selected EVgo as one of their first charging providers. EVgo has also worked with Tesla.

After the merger, it will be listed on the New York Stock Exchange under the ticker symbol "EVGO."

The company is joining a rush of other electric vehicle companies that have recently gone public including Canoo, Fisker, Lordstown Motors and Nikola.

EVgo CEO Cathy Zoi said that the need for fast charging is on the rise as improved technology, lower costs and greater selection is driving the electric vehicle market.

"An estimated 30% of Americans do not have access to at-home charging," Zoi said in a statement, "and EVs will be increasingly deployed by fleets to transport goods and people in an environmentally-friendly way. Time is precious for all of us, so a public fast charging option with an expanding footprint like EVgo is essential to meet the rapidly growing needs of EV drivers of all types."

Analysts say the demand for electric vehicles will continue to grow as regulators crack down on emissions and there's currently not much of an infrastructure for them. The incoming Biden administration has pledged to help develop an electric vehicle charging infrastructure as part of a jobs proposal for the automotive industry. And in California, Gov.Gavin Newsom ordered all new cars and passenger trucks sold in California be zero-emission by 2035.

"Starting from our IPO in September, we set out looking for a purpose-driven company making a meaningful contribution in the fight against climate change that was best in class in its sector. We are excited to have found that company in EVgo," CEO of CRIS David Crane said in announcing the deal.

Founded in 2010, EVgo has become one of the leading providers of electric vehicle charging stations in the U.S. Its chargers are in more than 800 locations in 34 states with 220,000 customers. It was acquired by LS Power in 2019.

"EVgo is a crown jewel in our portfolio, and is one of the LS Power businesses leading the charge toward decarbonization," David Nanus, LS Power's co-head of Private Equity and EVgo chairman, said in the announcement. "EVgo's extensive nationwide network and deep relationships with its customers and other stakeholders create a real competitive advantage for the company, and this business combination, which will both fully fund and accelerate the company's growth plans, positions EVgo to further strengthen its market-leading position."

Subscribe to our newsletter to catch every headline.

Cadence

10 Viral TikTok Tech Gadgets To Buy This Holiday Season

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

10 Viral TikTok Tech Gadgets To Buy This Holiday Season

Part of TikTok’s evolution over the years includes becoming another outlet for consumers to purchase popular gadgets. The app generated $821 million in global consumer spending across the App Store and Google Play in the first quarter of 2022 alone.

And since the holiday season is among us, it’s time to get some gifts checked off your list. So here’s 10 tech gadgets that went viral on TikTok that you can buy for your loved ones.

Read moreShow less

LA Tech ‘Moves’: Disney Taps Bob Iger for CEO, Former Meta Exec Joins DeSo

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

LA Tech ‘Moves’: Disney Taps Bob Iger for CEO, Former Meta Exec Joins DeSo
LA Tech ‘Moves’:

“Moves,” our roundup of job changes in L.A. tech, is presented by Interchange.LA, dot.LA's recruiting and career platform connecting Southern California's most exciting companies with top tech talent. Create a free Interchange.LA profile here—and if you're looking for ways to supercharge your recruiting efforts, find out more about Interchange.LA's white-glove recruiting service by emailing Sharmineh O’Farrill Lewis (sharmineh@dot.la). Please send job changes and personnel moves to moves@dot.la.

Read moreShow less

This Week in ‘Raises’: Swell Energy Lands $120M, Modyfi Draws in $8M

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

This Week in ‘Raises’: Swell Energy Lands $120M, Modyfi Draws in $8M
This Week in ‘Raises’:

As funding in Los Angeles continues to slow down, Swell Energy still managed to raise fresh funding to accelerate the company's mission to deploy 26,000 energy storage systems in homes and businesses across the United States.

Read moreShow less
RELATEDEDITOR'S PICKS
LA TECH JOBS
interchangeLA
Trending