ADS-TEC to hit the US stock exchange via SPAC merger
ADS-TEC Energy, a provider of battery buffered fast-charging technology, has announced that it is going public on the US stock exchange. For this purpose, the company from Nürtingen near Stuttgart will merge with the SPAC company European Sustainable Growth Acquisition Corp (EUSG), which is already listed there.
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After completion of the transaction that is expected in the fourth quarter of 2021, the joint company will continue to bear the name ADS-TEC Energy. The fast charging technology company estimates the pro forma market capitalisation of the future public company at approximately 580 million US dollars. The IPO will also be accompanied by a capital increase in the form of a PIPE (Private Investment in Public Equity), in the course of which investors such as APG, Invesco, Polar Structure and Swedbank Robur will inject 156 million US dollars.
ADS-TEC Energy is currently 61 per cent owned by ADS-TEC Holding GmbH (ADSH) and since 2018 39 per cent owned by Bosch. The German fast-charging technology company says that these two shareholders also have a “substantial stake in PIPE”. The existing management team of ADS-TEC Energy will continue to run the company after the transaction.
The usual closing conditions still have to be fulfilled in order to realise the entire transaction. The approval of the EUSG shareholders is also still pending. However, the fact that ADS-TEC has already planned for the proceeds from the IPO shows that the deal is probably in the bag. For example, a substantial portion will be used to “accelerate the expansion of ADS-TEC Energy’s storage solutions, charging and energy management platforms in the U.S. and Europe and continue the development and enhancement of the company’s existing technology platforms”. To facilitate this expansion, ADS-TEC Energy also intends to expand its operations in the US.
“Our vision is to provide platforms accompanied by long-term services that will accelerate the intelligent transition to an all-electric world, and we are excited to partner with EUSG to help us achieve that goal,” says CEO Thomas Speidel. “With EUSG’s funding and expertise, combined with our existing investor base and strong client network, we believe will be able to expand our technology into the EU and U.S. markets, delivering charging speeds and capabilities that would otherwise not be possible on existing networks. We will also work to ensure that EV charging is accessible to all, in line with sentiment expressed in the UN Sustainable Development Goals.”
Based on lithium-ion technologies, ADS-TEC has been developing and producing battery storage solutions including their energy management systems up to the multi-megawatt range for years. In the field of storage-based fast charging systems, the company is one of the largest German suppliers. The medium-sized family business has its headquarters in Nürtingen near Stuttgart and two production sites near Dresden. The company emphasises that all components, except for the cells, are manufactured in-house.
The battery-buffered technology allows nationwide, ultra-fast charging even in the existing, often power-limited network without an additional necessary expansion of the infrastructure. The company says that this enables the provision of ultra-fast charging even in areas and locations such as city centres, remote and rural areas with power-limited grid connections, helping to ensure fast charging of electric vehicles everywhere. ADS-TEC Energy says its charging platforms enable their operators to generate additional revenues, including grid service marketing, advertising, swarming and smart distributed energy management.
Update 28 December 2021:
ADS-TEC Energy has now launched on the US stock exchange. Following a SPAC merger with the European Sustainable Growth Acquisition, ADS-TEC Energy’s common shares and warrants began trading on Nasdaq on 23 December 2021 under the tickers “ADSE” and “ADSEW”, respectively.