ADS-TEC Energy GmbH (“ADS-TEC Energy” or “the Company”), a global leader in battery buffered ultrafast charging technology, and European Sustainable Growth Acquisition Corp. (NASDAQ: EUSG) (“EUSG”), a publicly traded special purpose acquisition company focused on identifying Europe-based, high growth, technology-enabled businesses that utilize green technologies, announced that they have entered into a definitive business combination agreement.
Upon the closing of the transaction the combined entity will be named ADS-TEC Energy and remain listed on the Nasdaq Capital Market.
A substantial portion of the proceeds from the transaction will be used to accelerate the expansion of ADS-TEC Energy’s storage solutions, charging and energy management platforms in the U.S. and Europe and continue the development and enhancement of the company’s existing technology platforms. To facilitate that expansion, ADS-TEC Energy intends to increase its US presence and operations.
At a time when the world needs tangible and scalable solutions to climate change, ADS-TEC Energy’s battery buffered technology enables widespread, ultrafast charging (up to 320kW) on existing power-limited grids without additional infrastructure power upgrades.
This allows for the introduction of ultrafast charging to previously unaddressed geographies and segments such as city centers, remote and rural areas, helping to ensure more inclusive access to EV charging.
ADS-TEC Energy’s electric vehicle charging platforms also offer operators the opportunity to generate multiple revenue streams, including advertising, grid services, swarm operations and intelligent distributed energy management. In addition, the Company’s established commercial and industrial platforms offer customizable energy storage solutions that optimize energy management and enable a variety of grid services for customers.
ADS-TEC Energy’s customer base includes well-known blue-chip customers, which is testament to the company’s capabilities and the charging capacity of its platform. With hundreds of battery buffered ChargeBox platforms already delivered, and with existing certifications in both US and European markets, ADS-TEC Energy is well-positioned for rapid expansion globally as the need for ultrafast charging capabilities increases with the transition to an all-electric economy.
ADS-TEC Energy’s management team, led by Founder and Chief Executive Officer Thomas Speidel, will continue to lead ADS-TEC Energy following the transaction.
With the new International Panel on Climate Change’s (IPCC) August 9 report providing the UN’s most dire warning yet regarding the potentially alarming consequences of rising emissions and temperatures, society urgently needs solutions that can move the planet toward a net zero emission economy.
The EU and the US administrations have identified transportation as a core part of managing their climate agendas and the race to scale EVs is continuing to gain traction, supported by major commitments from industries including automotive and energy.
ADS-TEC’s globally scalable and powerful storage solutions and energy management platforms provide solutions that can enable that transition. Specifically, ADS-TEC platforms can bring access to rapid charging capabilities to new markets and help overcome existing barriers to expanding the utilization of electric vehicles and reducing emissions.
Mr. Speidel.
Our vision is to provide platforms accompanied by long-term services that will accelerate the intelligent transition to an all-electric world, and we are excited to partner with EUSG to help us achieve that goal.
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“EUSG’s board has substantial experience building successful enterprises and a foundation ingrained in sustainable ESG investing. With EUSG’s funding and expertise, combined with our existing investor base and strong client network, we believe will be able to expand our technology into the EU and U.S. markets, delivering charging speeds and capabilities that would otherwise not be possible on existing networks.”
“We will also work to ensure that EV charging is accessible to all, in line with sentiment expressed in the UN Sustainable Development Goals.”
Lars Thunell, Chairman of EUSG.
As the world searches for solutions that can deliver net zero emissions, Thomas and his team have differentiated ADS-TEC Energy from the competition.
“ADS-TEC’s sustainable technology platforms expand and enhance the capabilities of existing energy grids to allow for a more effective migration to electric mobility. With their existing technology, potential for expansion into new markets and multiple revenue drivers for operators, ADS-TEC Energy is exceptionally well positioned to become a leader in electric vehicle and mobile charging infrastructure. We look forward to leveraging ADS-TEC Energy’s innovation and our expertise to enhance the electrification of our economy.”
Transaction Overview
The pro forma market capitalization of the combined company is approximately $580 million. EUSG has also secured commitments of a fully subscribed $156 million in a Private Investment in Public Equity (“PIPE”) at $10 per share, that is anticipated to close one business day prior to the business combination.
Investors in the PIPE include, amongst others, APG, Invesco, Polar Structure and SwedbankRobur. A portion of the proceeds from the PIPE will be used to fund the cash consideration required to effect the business combination.
ADS-TEC Energy is currently 61% owned by ADS-TEC Holding GmbH (“ADSH”) and 39% owned by Bosch Thermotechnik GmbH (“Bosch”). ADSH, Bosch and EUSG’s sponsors are substantially participating in the PIPE. ADSH is 100% owned by the family of the CEO and his family’s charitable foundation; the CEO has a majority of the votes in ADSH.
A substantial portion of the funds from the transaction will be used to accelerate the development of ADS-TEC Energy’s charging platforms and expand the Company’s reach into the United States and Europe.
The boards of directors of both ADS-TEC Energy and EUSG have unanimously approved the transaction, which is expected to be completed in the fourth quarter 2021. Completion of the proposed transaction is subject to, among other things, the approval of the shareholders of EUSG, satisfaction of the conditions stated in the definitive agreement and other customary closing conditions.
Highlights:
- ADS-TEC Energy’s Promising Energy Management Technology Platforms Enable Ultrafast Charging Utilizing Existing, and even Low Power, Energy Grid infrastructure
- Business Combination with EUSG Enables Expansion and Scale-up of ADS-TEC Energy Platforms into European and US Markets
- Company Secured a fully subscribed $156 Million in PIPE Investment in connection with the Transaction at $10.00 per share from leading ESG and blue-chip investors including Invesco, APG, Swedbank Robur, Bosch and Polar Structure, among others
ADS-TEC Energy GmbH, a Leading Ultrafast Battery Charging Company, to Become a Publicly Listed Company through Business Combination with European Sustainable Growth Acquisition Corp., NÜRTINGEN, Germany and NEW YORK, August 11, 2021
