Reuters is reporting that Swedish electric-car maker Polestar will go public by merging with a U.S.-listed blank-check firm backed by billionaire Alec Gores and investment bank Guggenheim Partners at an enterprise value of $20 billion. The deal with Gores Guggenheim will provide Polestar cash proceeds of over $1 billion, including $800 million from the special purpose acquisition company (SPAC), and a PIPE, or private investment in public equity, of $250 million from institutional investors.
Polestar, founded in 2017 by Volvo Car Group and China’s Zhejiang Geely Holding, also counts Hollywood actor Leonardo DiCaprio among its investors.
Polestar delivered about 10,000 vehicles globally last year and expects to sell about 290,000 vehicles per year by 2025. It predicts it will rake in $1.6 billion in revenue this year and double that number next year. Polestar joins other EV makers in the public market, including Tesla and Lucid Motors, which went public in a $24 billion SPAC deal in February.
Current equity holders of Polestar, who will roll their entire interest in the combined company, will retain about 94% ownership.