Brisbane-based manufacturer of fast chargers for electric vehicles (EVs) Tritium is set to be Australia's next unicorn as it lines up plans for a deal that will turn it into a NASDAQ-listed company.
Announced today, Tritium has entered into a merger with a special purchase acquisition company (SPAC) called Decarbonization Plus Acquisition Corporation II (NASDAQ: DCRN).
Upon closing of the transaction, the combined entity will be named Tritium and is expected to be listed on the NASDAQ and trade under the new ticker symbol "DCFC".
The deal will provide gross proceeds of up to approximately $520 million to Tritium and will value the 20-year-old company at $1.55 billion.
The transaction is a milestone for the company founded in 2001 by Dr David Finn, James Kennedy and Dr Paul Sernia.
Tritium designs, develops and manufactures proprietary hardware for advanced and reliable fast charging of EVs.
Post-merger Tritium intends to grow its operations to three global, full-scale manufacturing facilities, with investment in a new production facility in Europe, expansion of its Los Angeles site, and further development of the Brisbane facility.
"The agreement between Tritium and DCRN is a vote of confidence in Tritium's vision and market viability as well as the e-mobility industry as a whole," Tritium CEO Jane Hunter said.
"We plan to expand to three global manufacturing facilities, expedite product development, grow our global sales and service operations teams, and so much more.
"This agreement funds that growth plan, enabling us to expand our business operations, enhance our products, and provide even more services to our customers."
Hunter, a former Boeing executive, said the company was well-positioned to benefit from accelerating and sustained long-term growth of the EV market, which is projected to have a compound annual growth rate of nearly 20 per cent through 2044.
"The accelerated electrification of the transport sector globally is now underway and has extraordinary implications beyond the benefits to individual consumers," Hunter said.
"Our industry is essential to achieving global emission reduction targets both through increased adoption of electric vehicles and the deployment of EVs for mass energy storage technology.
"As 'batteries on wheels,' EVs will help pave the way for more renewable power to be introduced into national energy mixes. E-mobility also plays a critical role in improving air quality, which is critical for public health in populated regions."
Post-merger Hunter will continue as the CEO of Tritium, alongside co-founders James Kennedy (chief technology officer) and Dr David Finn (chief growth officer), and executives David Toomey (chief revenue officer) and Michael Hipwood (chief financial officer).
DCRN chairman Robert Tichio will join the board of directors of the combined company at the close of transaction and will sit alongside Finn, Trevor St. Baker AO (founder and chairman of St. Baker Energy Innovation Fund), Brian Flannery (managing director of White Energy Company Limited), and Kara Frederick (managing director of Tiger Financial Group).
"Today is an incredibly proud day for Tritium's founders, David, James and Paul, and also for Australia's technology and e-mobility sectors," St. Baker said, whose fund was an early investor in Tritium.
"We're proud to have supported the Tritium success story from a start-up in Brisbane, to a global exporter and manufacturer of advanced charging technology with a leading global market share."
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