Electric Vehicle Charging Company Allego To Go Public Via SPAC Merger

Kimberly Redmond  |

Image source: Spartan Acquisition Corp III presentation, filed as exhibit to Form 8-K, July 28, 2021

European electric vehicle charging company Allego Holding will go public via a merger with Spartan Acquisition Corp III (NYSE:  SPAQ), a special purpose acquisition company backed by private equity giant Apollo Global Management Inc (NYSE:  APO).

The deal, announced Wednesday, values Allego at $3.14 billion. The transaction will generate $702 million in proceeds, including $150 million from a private placement.

The private portion of the deal includes institutions such as Hedosophia and ECP, strategic partners including Fisker and Landis+Gyr and affiliates of Apollo Global Management and Meridiam, long-term owner of Allego.

Meridiam, a French investment firm that acquired Allego in 2018, will roll 100% of its equity and retain 75% of the combined entity.  

After the deal’s expected close in the fourth quarter of 2021, Allego will be listed on the New York Stock Exchange under the ticker symbol “ALLG.”

Since its 2013 founding, Allego has deployed over 26,000 charging ports across 12,000 public and private locations in 12 European countries. 

The chargers can be used by all brands of electric vehicles.

As the auto industry continues its shift from gas-powered engines to battery-powered ones, Allego plans to leverage its flexible charging network to service new EV drivers.

In a statement, Mathieu Bonnet, Allego’s chief executive officer, said the partnership with Spartan will provide capital that will enable the company to accelerate its “leadership within the European charging market” and maintain “a strong financial position throughout the growth phase.”

Geoffrey Strong, chairman and chief executive officer of Spartan and senior partner at Apollo, said, “We believe Europe is an extremely attractive market for EV charging and Allego is well-positioned to capitalize on its innovative technology, a strong leadership position in Europe and supportive macro trends buoying the EV charging market.”

Demand for companies in the EV space has been on the rise in recent years, spurred in part by a green push globally. 

According to a new analysis from Mercom Capital Group, smart charging companies raised $271 million in eight deals in the first half of 2021. 

One of the most recent deals includes the merger of Spanish startup Wallbox Chargers with Kensington Capital Acquisition Corp II in a deal that values the combination at $1.5 billion.

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Source: Equities News

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