Fisker goes public in €2.5 billion merger

14 July 2020

14 July 2020

US electric-vehicle (EV) maker Fisker has entered into a merger valued at $2.9 billion (€2.5 billion), which will see it become a publicly-listed company. This move will channel more than $1 billion in gross proceeds into the company.

The manufacturer will merge with special-purpose acquisition company Spartan Energy Acquisition Corporation (Spartan), which was backed by alternative investment manager Apollo Global Management.

The boards of directors of both companies approved the proposed transaction, which is expected to be completed in the fourth quarter of 2020. This will, however, be subject to approval from Spartan’s shareholders, the satisfaction of conditions stated in the definitive agreement and other closing conditions.

Funding the Fisker Ocean

The Los Angeles-based car maker aims to revolutionise the automotive industry by developing what it calls ‘the most emotionally desirable and eco-friendly electric vehicles on Earth.’ It is anticipated that the merger will provide the company with the necessary funds to bring its first product, the Fisker Ocean, to production in late 2022.

The battery-electric vehicle (BEV) SUV has been designed with sustainability as a key selling point, making the most of environmentally-friendly and recycled materials. For example, abandoned fishing nets and plastics from the ocean will be used in the interior.

The Fisker Ocean will be capable of a range of approximately 400 kilometres. It will also be available with four-wheel drive and high-performance dual motors. There even looks to be an optional full-length solar roof with the potential to generate over 1,600 kilometres of charge a year.

The SUV will be available to consumers through a leasing package, optimised for ‘driver convenience and accessibility’. Accessible via an app, Fisker hopes to appeal to customers looking for both sustainable transport and freedom from more restrictive leasing programmes.

The BEV has so far won numerous awards since its debut at the 2020 Consumer Electronics Show (CES), which Fisker claims highlights a strong market reception for this type of vehicle and the company’s ethos of appealing design and sustainability.

Another step forward for Fisker

‘The realisation of the world’s first digital-car company took another major step forward, advancing our mission to commercialise the world’s most emotional and sustainable vehicles while upholding our vision of a clean future for all,’ said CEO Henrik Fisker. ‘This vote of confidence from investors, coupled with our exciting progress on the development of our first vehicle, lays out Fisker’s path to 2022 and beyond.’

‘Our funding, product plans and brand development actions are on course,’ Fisker added. ‘Prototype vehicles are expected to start durability testing by the end of this year, and we continue to make significant progress on the development of our sales and service proposition.’

‘We are excited to work with Fisker to help achieve its vision of attainable electric transportation,’ said Geoffrey Strong, chairman and CEO of Spartan. ‘Henrik has an unparalleled and world-renowned design track record and is supported by an expert management team with storied careers in the automotive industry. The right team, combined with deep financial resources provided by this transaction, further position the company to succeed in a rapidly growing industry.’