Tembo E-LV, a unit of power infrastructure developer VivoPower International, said on Thursday it has agreed to go public through a merger with blank check firm Cactus Acquisition in a deal that would value the new entity at $904 million.
Tembo specializes in battery-electric and off-road vehicles for sectors including mining, utilities, infrastructure, government services and humanitarian aid.
In 2020, VivoPower acquired a 51% stake in Tembo to expand its market for electric light vehicles and sustainable energy solutions.
The deal is expected to close by the end of the year and the newly formed company, Tembo Group, will seek a listing on the Nasdaq exchange.
SPAC deals have reduced significantly since a boom in 2021 due to increased regulatory scrutiny.
A special purpose acquisition company, or SPAC, is created to raise capital through an IPO with the intention of merging with a private company and taking it public.
Source: Reuters.com