On Thursday, Tembo E-LV, a unit of power infrastructure developer VivoPower International (NASDAQ: VVPR), said it has agreed to go public through a merger with blank check firm Cactus Acquisition (NASDAQ: CCTS) 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 (NASDAQ: VVPR) 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 to merge with a private company and take it public.
(Source: Reuters)
Kevin Putnam is a financial journalist and editor based in New York. He specializes in editing news and analysis related to U.S. stock market.
