Enerdatics data suggests that the country has witnessed a total of six special purpose acquisition company (SPAC) mergers totaling $2.75bn, since the start of 2022. These deals were primarily focussed on the solar energy segment. Enerdatics understands that SPAC mergers have become more advantageous than IPOs amid current market conditions, as the merging firm can negotiate the share price with the SPAC before the transaction concludes. On the other hand, stock prices in an IPO are more sensitive to market sentiment at the time of listing, and hence carry greater risk for investors. SPAC mergers also provide companies with capital on their balance sheet at the time of closing, which enables the company to pursue more ambitious growth plans. Furthermore, access to a larger network of contacts through SPAC sponsors and faster deal execution are driving the transaction activity.
Deal details: Residential solar provider Suntuity Renewables has merged with blank cheque company Beard Energy Transition Acquisition Corp (BRD), forming a new company named Suntuity Inc. The merged company will have an enterprise value of $249mn and will be listed on the New York Stock Exchange (NYSE). While Suntuity already has a track record of installing ~10,000 residential systems across 25 US states, the new firm will continue to expand its offerings and execute on its $55mn backlog comprising over 1,100 projects.
Other significant deals: Some of the other recent SPAC mergers in the country include Sunergy Renewables’s deal with ESGEN Acquisition Corp for $475mn, Electriq Power’s agreement with TLG Acquisition One Corp for $495mn, and Complete Solaria’s unification with Freedom Acquisition I Corp for $553mn.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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