Electric car maker Fisker will go public through a merger with a "blank check company" backed by private equity firm Apollo Global Management Inc at a valuation of $2.9 billion, the companies said on Monday.
Reuters reported last week that the special purpose acquisition company (SPAC), known as Spartan Energy Acquisition Corp, was leading a bidding war among blank-check companies for Fisker.
The deal will provide Fisker with $1 billion in gross proceeds, including $500 million of funds from existing and new investors such as AllianceBernstein and BlackRock Inc.
Henrik Fisker, a one-time Aston-Martin designer, launched the eponymous Los Angeles-based company in 2016, and plans to begin selling the Fisker Ocean luxury electric SUV at a starting price of $37,500.
His previous automotive venture, Fisker Automotive, filed for bankruptcy in 2013 after burning through $1.4 billion in private investments and taxpayer-funded loans.