LA's Xos Electric Truck-Maker Will Go Public Through SPAC
Francesca Billington is a freelance reporter. Prior to that, she was a general assignment reporter for dot.LA and has also reported for KCRW, the Santa Monica Daily Press and local publications in New Jersey. She graduated from Princeton in 2019 with a degree in anthropology.
Xos Inc., a North Hollywood-based electric vehicle company, announced on Monday it plans to go public through a merger with NextGen Acquisition Corp.
The companies expect to start trading as "XOS" on the Nasdaq by the second quarter of 2021 following a transaction that values the combined entity at $2 billion.
Xos was founded in 2016 by two former fleet operators looking to build an alternative to the fossil fuel-saturated industry. In 2019, the company started offering its EV fleet service at a fixed monthly fee for customers including UPS and Wiggins. It's focused on medium and heavy-duty commercial fleets that travel on predictable routes and don't exceed 200 miles each day.
It now has a backlog of over 6,000 trucks, according to the company.
"Climate change is one of the world's greatest challenges, and commercial trucks are the largest emitters per capita of greenhouse gases in the transportation industry," said George Mattson, co-founder and co-chairman of NextGen in an announcement. "Simultaneously, last-mile e-commerce delivery is growing, accelerated by changes in consumer purchasing behaviors post-COVID."
Gregory Summe, co-founder and co-chairman of the SPAC added that "Xos is best-positioned to capture the rapidly growing demand for commercial electric vehicles with a compelling customer offering."
The transaction includes a $200 million common stock PIPE led by Janus Henderson investors and truck dealers led by Thompson Truck Centers. The deal is expected to bring in $575 million to both companies after closing.
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Francesca Billington is a freelance reporter. Prior to that, she was a general assignment reporter for dot.LA and has also reported for KCRW, the Santa Monica Daily Press and local publications in New Jersey. She graduated from Princeton in 2019 with a degree in anthropology.
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