Electric vehicle developer Fisker Inc. announced today that it will become a public company following a business combination with Spartan Energy Acquisition Corp. Spartan is a special purpose acquisition company sponsored by an affiliate of private equity firm Apollo Global Management. Describing its vision as “a clean future for all,” Fisker’s publicly stated mission is to “create the world’s most emotional & sustainable vehicles.”

The electric vehicle space has become a key focus area for private equity investors lately. Recently, EV truck and SUV company Rivian announced the closing of a $2.5 billion financing round.

The proposed transaction will provide Fisker with over $1 billion in gross proceeds, including $500 million fully committed common stock PIPE (private investment in public equity) by investors including Moore Strategic Ventures, AllianceBernstein, and funds and accounts managed by BlackRock and Federated Hermes Kaufmann. At a $10.00 per share PIPE price and assuming minimal redemptions by Spartan shareholders, the combination values Fisker at a $2.9 billion pro forma equity value.

The transaction is intended to provide the necessary funding to bring its first product, the Fisker Ocean, a fully electric SUV, to production in late 2022.

Fisker Inc. Founder, Chairman and Chief Executive Officer, Henrik Fisker said:

“Today, the realization of the world’s first digital car company took another major step forward, advancing our mission to commercialize the world’s most emotional and sustainable vehicles, while upholding our vision of a clean future for all. We are excited to partner with Apollo, a world-class financial institution who brings deep industry expertise, extensive global relationships and a shared commitment to ESG. This vote of confidence from investors, coupled with our exciting progress on the development of our first vehicle, lays out Fisker’s path to 2022 and beyond. Drivers of the Fisker Ocean SUV will also benefit from our unique flexible lease program that maximizes affordability, while delivering unrivaled ownership flexibility. Deployed through our proprietary app, our leasing model has been designed to appeal to customers looking for the ultimate in sustainable mobility and freedom from traditional and restrictive leasing programs.”

Geoffrey Strong, Chairman and CEO of Spartan and Senior Partner, Co-Head of Infrastructure and Natural Resources at Apollo said:

“Spartan and Apollo have a strong commitment to sustainability and ESG, and we are excited to work with Fisker to help achieve its vision of attainable electric transportation. Henrik has an unparalleled and world-renowned design track record and is supported by an expert management team with storied careers in the automotive industry. The right team, combined with deep financial resources provided by this transaction, further position the company to succeed in a rapidly growing industry.”

Fisker added, “Our funding, product plans and brand development actions are on course. Prototype vehicles are expected to start durability testing by the end of this year, and we continue to make significant progress on the development of our sales and service proposition.”

According to the company, the Fisker Ocean will be the world’s most sustainable vehicle including extensive use of environmentally friendly and recycled materials. The vehicle has won numerous awards since its debut at the Consumer Electronics Show earlier in 2020, highlighting strong market reception for this type of vehicle and for the Fisker ethos of appealing design and sustainability.

Pre-market, Spartan shares are trading at $19.44, up nearly 17%.