XL Fleet, an electrified-powertrain-solutions company working with vehicles made by Ford (F) - Get Ford Motor Company Report, GM (GM) - Get General Motors Company (GM) Report and Isuzu, said it would go public through a reverse merger with a special-purpose acquisition company, Pivotal Investment. (PIC) - Get Pivotal Investment Corporation II Class A Report
The pro forma implied enterprise value of the combined company at closing will be $1 billion, with $350 million in net cash
Thousands of XL-equipped vehicles are already on the road, XL Fleet Chief Executive Dimitri Kazarinoff said in a statement. The company aims to "pave the way for fleets seeking to promote sustainability while improving operational efficiency."
The Boston company, which makes systems to reduce fuel consumption, is forecasting that sales will more than triple to $75 million in 2021 from $21 million this year.
XL-equipped units already on the road have logged 130 million miles driven by more than 200 clients, including FedEx, Coca Cola, PepsiCo, Verizon, the city of Boston, the Seattle Fire Department, Yale University and Harvard University.
In addition to its electric-powertrain platform, XL also provides real-time data monitoring and analytics.
"We believe that this transaction will enable XL Fleet to advance and accelerate the growth of our industry-leading fleet electrification business, including a rapid expansion of our product offerings," Kazarinoff said.
Meanwhile, Pivotal is a SPAC backed by CEO Jonathan Ledecky, who is the co-owner of the National Hockey League's New York Islanders.
The transaction is subject to a number of conditions, including approval by the stockholders of both XL and Pivotal, clearance by antitrust regulators, and more.
Shares of Pivotal Investment at last check jumped 19% to $12.58.