Polestar Performance, the Sweden-headquartered electric vehicle (EV) producer spun off by carmakers Volvo Cars and Geely, agreed yesterday to merge with special purpose acquisition company Gores Guggenheim at an expected $20bn valuation.
The merged business, Polestar Automotive Holding, will take the place on the Nasdaq Capital Market secured by Gores Guggenheim – formed by affiliates of private equity firm The Gores Group and investment adviser Guggenheim Capital – in a $750m initial public offering in March this year.
The transaction will be supported by $250m in private investment in public equity financing from unnamed institutional investors.
Polestar has developed a hybrid electric sports car called the Polestar 1 and an electric five-door hatchback, the Polestar 2. It expects to launch three more vehicles in the next four years beginning with a sports utility vehicle in early 2022.
The company’s first external investment came in April this year when Chongqing Chengxing Equity Investment Fund Partnership, Zibo Financial Holding and Zibo Hightech Industrial Investment co-led a $550m round that also featured diversified conglomerate SK Group.
Volvo Cars reportedly invested an undisclosed amount three months later to increase its stake in Polestar to 49.5%. It has also identified actor Leonardo Di Caprio and affiliates of Geely chairman Eric Li as investors.
Polestar CEO Thomas Ingenlath said: “This is a really exciting time for Polestar. With two award-winning cars on the road today in 14 active markets across three continents, we seek to expand to 30 markets by 2023.”
Ingenlath added: “The proposed business combination and listing position Polestar as a financially strong, future proof, global electric car company. It will enable us to accelerate our growth, strategy and most importantly, our mission towards sustainable mobility.”
Image courtesy of Polestar Performance AB.
