ChargePoint, the US-based operator of an electric vehicle (EV) charging network backed by a long list of corporates, yesterday agreed to a reverse merger with Switchback Energy Acquisition that will value the company at $2.4bn.
The deal includes a $225m private investment in public equity (Pipe) co-led by Baillie Gifford and funds managed by Neuberger Berman Alternatives Advisors. The Pipe transaction will consist of shares priced at $10.
Switchback’s sponsor and certain stockholders agreed that a portion of their equity will vest only if ChargePoint’s share price exceeds $12 for any ten trading days within any twenty consecutive trading day period prior within five years of the merger closing.
Together with $317m held by Switchback in trust, ChargePoint will have $683m in capital. The combined company will trade on the New York Stock Exchange as ChargePoint Holdings once the merger concludes, following customary closing conditions, in the fourth quarter.
Founded in 2007, ChargePoint operates a subscription-based charging network for EVs. It sells its hardware to businesses and other parking space owners, targeting clients across the residential, commercial and fleet spaces.
Proceeds from the merger will allow ChargePoint to expand further across North America and Europe, drive technology development and scale its offering as it anticipates an increasing number of drivers buying EVs.
ChargePoint has raised $667m in funding so far. Oil and gas supplier Chevron’s subsidiary Chevron Technology Ventures and energy utility American Electric Power (AEP) took part in a $127m round last month together with Clearvision Ventures and Quantum Energy Partners.
Quantum Energy Partners led a $240m series H round in late 2018, when AEP, Chevron Technology Ventures and Clearvision also took part.
Carmakers BMW and Daimler backed the series H round – through BMW i Ventures and Daimler Trucks & Buses respectively – as did industrial technology producer Siemens, Braemar Energy Ventures, Linse Capital, GIC and Canada Pension Plan Investment Board.
Daimler led a $125m series G round in 2017, with participation from Siemens, BMW i Ventures, Linse Capital, Braemar Energy Ventures and Rho Capital Partners.
Energy utility Constellation Energy participated in a $50m round in 2016 together with Linse Capital and Braemar Energy Ventures, two years after the corporate’s venture capital arm Constellation Technology Ventures had supplied $4m.
BMW, Siemens unit Siemens Venture Capital, Rho Ventures, Braemar Energy Ventures, Kleiner Perkins Caufield & Byers (KPCB) and Voyager Capital had provided $22.6m in earlier in 2014.
Siemens Venture Capital already joined Hartford Ventures and Toyota Tsusho – subsidiaries of insurance group The Hartford and carmaker Toyota – Braemar, KPCB, Rho, Voyager and Harbor Pacific Capital Partners to inject $47.5m in a 2012 series D round followed by a BMW commitment soon afterwards.
Siemens Venture Capital, Hartford Ventures, industrial manufacturers LS Industrial Systems and LS Cable were among the backers of a $15m series C round in 2010, as were Harbor Pacific, Rho Ventures and Voyager Capital.
Voyager and Rho co-led a $14m series B round earlier in 2010, investing with Siemens Venture Capital and Hartford Ventures, following a $3.75m series A led by Estag Capital in 2009.