Solar energy company Sunergy Renewables said on Wednesday it will go public via a merger with blank-check firm ESGEN Acquisition Corp in a deal that will value the combined company at $475 million.
Sunergy, which was founded in 2005, provides solar and battery-based power as well as storage systems for residential use in Florida, Texas and Arkansas.
“The proceeds from the transaction will help Sunergy scale more rapidly to meet the current demand we are seeing from our customers,” Sunergy Chief Executive Tim Bridgewater said.
Following the completion of the transaction, expected in the fourth quarter, the combined company will be listed on the Nasdaq.
A special purpose acquisition company, or SPAC, is a publicly listed shell company that raises funds with the intention of merging with a private company within two years of floating its shares. The private firm goes public through the merger.
The SPAC sector has been torpedoed by several scrapped deals since last year as market turbulence due to inflation and rising interest rates spook startups looking to go public.
Source: Reuters.com