initial public offerings (IPOs) trading on American exchanges

Monday, February 22, 2021

NextGen Acquisition (NGAC) to merge with electric truck maker Xos

The Xos transaction is set to close in the second quarter with the combined company listing on the Nasdaq under the symbol XOS.

The deal will provide Xos with $575 million in proceeds and values the company at $2 billion. It expects to be cash flow positive by 2023.

Unlike many EV startups debuting on the stock market, Xos has EVs on the road. It also offers a package that bundles commercial electric trucks and vehicle services to fleet operators for a monthly fee. Customers include UPS (UPS).

The transaction includes a $220 mln oversubscribed and fully committed common stock PIPE anchored by Janus Henderson Investors, as well as a consortium of truck dealers led by Thompson Truck Centers.

Xos is expected to deliver industry-leading total cost of ownership through proprietary purpose-built battery and powertrain systems, integrated vehicle software and controls, and a modular OEM powertrain architecture built on the adaptable X-Platform. Multi-year manufacturing partnership with Metalsa for purpose-built frame rails and chassis components.

The transaction is expected to close in the second quarter of 2021 and the combined company will be listed on The Nasdaq Stock Market under the symbol "XOS".

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