It is official. Spartan Energy Acquisition is buying California-based electric-vehicle maker Fisker, in a deal valuing the startup at $2.9 billion—another billion-dollar valuation for the ultrahot alternative-fuel space.
Spartan’s (ticker: SPAQ) market value crossed the billion-dollar threshold last week when the stock jumped 55% on news of the potential combination. The transaction will bring more than $1 billion in fresh capital to the Fisker, the target company, fully funding the development of Fisker’s electric SUV called Ocean.
Fisker believes the Ocean is the world’s most sustainable all-electric SUV because it is manufactured using recycled materials.
Spartan, the buyer, is a special purpose acquisition company, or SPAC, founded for the purpose of finding the next big thing. Spartan is controlled by private-equity giant Apollo Global Management (APO).
“We are excited to work with Fisker to help achieve its vision of attainable electric transportation,” Geoffrey Strong, chairman and CEO of Spartan, said in a news release. “Henrik [Fisker] 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.” Strong is also senior partner, co-head of infrastructure and natural resources at Apollo.