By
Mayowa Adebajo
September 11th, 2023
For ChargePoint, a reverse merger is an attractive opportunity to go public and a good strategic option. According to internal sources, the deal could value the company at over $2 billion.
ChargePoint, the world’s largest network of electric vehicle (EV) charging stations, is preparing for a reverse merger deal to go public. According to those familiar with the matter, the other party of the deal is Switchback Energy Acquisition Corp (NYSE: SBE), a blank check organization created to conduct a merger, capital stock exchange, etc.
A reverse merger is a merger in which a private company becomes a public company by acquiring it. It saves a private company from the complicated process and expensive compliance of a traditional IPO. Instead, it acquires a public company as an investment and converts itself into a public company.
For ChargePoint, a reverse merger is an attractive opportunity to go public and a good strategic option. According to internal sources, the deal could value the company at over $2 billion. Neither ChargePoint nor Switchback commented on the news.
Following the announcement, Switchback stock soared. It closed 27.27% up on Wednesday, at $13.30 per share. In the pre-market today, it is further up, $14.83 per share at the moment of writing.
About ChargePoint Before Going Public
ChargePoint is the world’s largest and most open EV charging network with over 100,000 charging spots in 14 countries. Founded in 2007, ChargePoint managed 34,900 charging stations across Mexico, Australia, Canada, and the United States by 2017. In June that year, it took over 9,800 electric vehicle charging spots from General Electric Company (NYSE: GE). In 2018, the number of its charging stations reached 57,000 spots. The company reached 100,000 chargers in September 2019, while adding more than 2,000 charging locations per month. To date, ChargePoint’s network has grown to more than 114,000 places to charge and 80 million charging sessions, with drivers plugging in approximately every two seconds.
By August 2017, ChargePoint was planning a listing. In August this year, ChargePoint closed $127 million in incremental equity financing. The funds will accelerate the expansion of ChargePoint’s global commercial and fleet businesses, supporting the world’s transition to electric mobility.
About Switchback Energy Acquisition Corp
Switchback Energy Acquisition Corporation is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. Backed by NGP Switchback, LLC that has great experience investing in the energy industry, Switchback focuses on investing in businesses and/or assets in the upstream and midstream energy sectors primarily in North America.
Switchback Energy Acquisition is not a large company by global standards. However, it already has institutions on the share registry. Moreover, they own a respectable stake in the company, which means Switchback stock is a prosperous buy.