EVgo goes public in $2.6bn SPAC deal

BY Richard Summerfield

EVgo Services LLC, the wholly owned subsidiary of LS Power that owns and operates public fast chargers for electric vehicles, is to become a publicly traded company through a $2.6bn merger with special purpose acquisition company (SPAC) Climate Change Crisis Real Impact I Acquisition Corporation.

The deal is expected to provide EVgo with around $575m in net cash proceeds, including $400m from investors such as Pacific Investment Management Co LLC (PIMCO), BlackRock Inc and Wellington Management, among others.

“Just a few years ago, electric vehicles were considered niche,” said Cathy Zoi, chief executive of EVgo. “Today, improved technology, lower costs, greater selection, and a better appreciation for the performance of EVs is increasingly making them the vehicle technology of choice. With that, the need for fast charging is on the rise.

“An estimated 30% of Americans do not have access to at-home charging, and EVs will be increasingly deployed by fleets to transport goods and people in an environmentally-friendly way,” she added. “Time is precious for all of us, so a public fast charging option with an expanding footprint like EVgo is essential to meet the rapidly growing needs of EV drivers of all types.”

“EVgo is a crown jewel in our portfolio, and is one of the LS Power businesses leading the charge toward decarbonization,” said David Nanus, co-head of private equity at LS Power and chairman of EVgo. “EVgo’s extensive nationwide network and deep relationships with its customers and other stakeholders create a real competitive advantage for the company, and this business combination, which will both fully fund and accelerate the company’s growth plans, positions EVgo to further strengthen its market-leading position.”

EVgo has chargers in more than 800 locations in 67 major metropolitan markets across 34 states in the US. The company has landed a number of partnerships, including with Albertsons, Kroger and Wawa to install its chargers.

The company has also agreed deals with car manufacturers such as GM and Nissan, as well as ride-hailing companies Lyft and Uber. In July, GM and EVgo announced plans to add more than 2700 new fast chargers over the next five years. Though electric vehicles are still niche, they are expected to experience significant growth in the coming years.

News: EV charging network EVgo to go public via $2.6 billion SPAC deal

Citrix to acquire Wrike for $2.25bn

BY Richard Summerfield

Citrix Systems has announced that it has entered into a definitive agreement to acquire Slack competitor Wrike for $2.25bn in cash.

The deal, which has been unanimously approved by the board of directors of both companies, is expected to close in the first half of 2021, subject to regulatory approvals and other customary closing conditions. The combined company will have 400,000 customers across 140 countries.

Citrix plans to fund the transaction with a combination of new debt and existing cash and investments. The company has obtained a commitment from JPMorgan Chase Bank for a $1.45bn senior unsecured 364-day bridge loan facility.

Citrix said it expects Wrike to generate approximately 30 percent standalone growth in 2021 to between $180m and $190m in annual recurring revenue.

“Work today is happening everywhere – at home, in the office and on the road,” said David Henshall, president and chief executive of Citrix. “We believe that in the future, success will go to those companies that can support flexible and hybrid work models and provide a consistent, secure and efficient experience that removes the complexity and noise from work so employees can focus and perform at their best, wherever they happen to be.

He continued: “Together, Citrix and Wrike will deliver the solutions needed to power a cloud-delivered digital workspace experience that enables teams to securely access the resources and tools they need to collaborate and get work done in the most efficient and effective way possible across any channel, device or location.”

“When it comes to the future of work, Citrix and Wrike share a common vision and mission: to reduce the complexity and chaos of work and empower every person, team, and organisation to achieve their very best,” said Andrew Filev, founder and chief executive of Wrike. “Together, we will unlock the workspace of the future, truly transforming the work experience and equipping people with an innovative set of solutions they can use to exceed goals and keep business moving forward.”

News: Citrix to buy Wrike for $2.25 billion

Escape from New York? – NRA files for Chapter 11

BY Fraser Tennant

In what it calls the "most transformational moment in its history”, the National Rifle Association (NRA) has filed for Chapter 11 protection in order for it to reincorporate in Texas and escape “a corrupt political and regulatory environment” in New York, where it is currently incorporated.

The NRA has stated that the Chapter 11 filing is part of a restructuring plan rather than financial problems and that it is not bankrupt or going out of business. Rather, the association has indicated that it is in its strongest financial condition in years.

The gun-rights group’s plan to restructure and move to Texas comes amid a legal battle with New York’s attorney general Letitia James, who has vowed to investigate the “legitimacy” of the NRA and seek its dissolution.

To this end, in August 2020, the NRA was sued by Ms James, accusing NRA chief executive and executive vice president Wayne LaPierre and other senior leaders of illegally diverting tens of millions of dollars from the association through excessive expenses and contracts that benefitted relatives or close associates.

In response, the NRA rapidly filed its own lawsuit, stating that there was no evidence to support the attorney general’s claims that the NRA was a “terrorist organisation” and a “criminal enterprise”. Moreover, the association believes that the attorney general’s investigation is for purely political purposes.

Aiming to swiftly move through the Chapter 11 restructuring process, the NRA seeks court approval to reincorporate the association in the state of Texas – home to more than 400,000 NRA members – while continuing its day-to-day operations, training programmes and second amendment advocacy.

“Texas values the contributions of the NRA, celebrates our law-abiding members, and joins us as a partner in upholding constitutional freedom,” said Mr LaPierre. “We seek protection from New York officials who illegally abused and weaponised the powers they wield against the NRA and its members.”

Established in 1871, the NRA is America’s largest and oldest civil rights organisation, with approximately five million members. Furthermore, through its restructuring plan, the NRA aims to streamline costs and expenses, proceed with pending litigation in a coordinated and structured manner, and realise many financial and strategic advantages.

“The plan represents a pathway to opportunity, growth and progress,” concludes Mr LaPierre. “The NRA is pursuing reincorporating in a state that values the contributions of the NRA, celebrates our law-abiding members and will join us as a partner in upholding constitutional freedom. This is a transformational moment in our history.”

News: N.R.A. Declares Bankruptcy and Seeks to Exit New York

Telefonica sells Telxius to American Towers in €7.7bn deal

BY Fraser Tennant

In a move which opens a new front in the race to control Europe’s fast-growing tower industry, multinational telecommunications company Telefonica has sold its mobile phone mast infrastructure unit Telxius to real estate investment trust American Towers Corporation for €7.7bn.

Under the terms of the agreement, American Towers will acquire approximately 30,772 telecommunications tower sites, comprising Telefonica’s European (Spain and Germany) assets, as well as its interest in Latin America (Brazil, Peru, Chile and Argentina).

The deal is part of the strategy and fulfilment of Telefónica’s strategy, which includes, among other objectives, an active portfolio management policy for its businesses and assets, based on value creation.

“This is a deal that makes strategic sense within our roadmap,” said José María Álvarez-Pallete, president of Telefónica. “American Towers was our second supplier after Telxius. After this great operation we will continue to focus on our most ambitious objectives: the integration of O2 with Virgin in the UK, the purchase of Oi mobile in Brazil and the reduction of debt."

Telefonica has also stated that it plans to use the proceeds of the sale, which include a capital gain of approximately €3.5bn, to reduce its net financial debt by €4.6bn.

“This transaction is transformational for our European business and will establish American Tower as one of the largest independent communications infrastructure providers in Europe,” said Tom Bartlett, chief executive of American Towers. “It is also complementary for our Latin American portfolio and positions us to drive strong long-term organic growth across both regions while augmenting our new build programs and enhancing our relationships with key tenants.”

The transaction is expected to close in the second quarter of 2021, subject to government and regulatory approvals and customary closing conditions.

Mr Bartlett concluded: “We are excited to broaden our partnership with Telefónica by acquiring a high-quality, well-located portfolio of sites that will further diversify our global footprint and enhance our ability to help provide broadband connectivity for billions of people.”

News: Telefonica sells mobile phone masts to American Towers for $9.4 bln

Global Infrastructure Partners agrees $4.63bn Signature Aviation deal

BY Richard Summerfield

Global Infrastructure Partners has agreed to acquire private jet servicing company Signature Aviation in a $4.63bn deal. Global Infrastructure Partners, which co-owns London’s Gatwick airport, has overcome private equity giants Blackstone and Carlyle to acquire Signature Aviation.

Under the terms of the deal, Signature Aviation’s investors will receive $5.50 per share held, according to a statement. The price is above the $5.17 a share approach made last week by Blackstone Group Inc and Bill Gates, Signature Aviation’s biggest shareholder. Mr Gates, who owns 19 percent of the company through his vehicle Cascade Investment, joined Blackstone in its bid to buy the business.

Blackstone or Carlyle (which was exploring a $4.07bn bid for Signature) can still table a new bid for the company.

Signature Aviation offers services such as fuelling and maintenance at airports round the world. Private flying services, such as those offered by Signature, are one of the few travel sectors to have benefited from the coronavirus pandemic as they offer opportunities for travel while minimising potentially risky contact with other passengers.

“Signature, like many businesses in the aviation sector, needs to address the challenges resulting from Covid, whilst market conditions and earnings are likely to remain subdued for some time,” said Adebayo Ogunlesi, chairman and managing partner of Global Infrastructure Partners. “As an experienced, long term infrastructure investor with a strong operational focus, we believe that we are the ideal partner for Signature going forward.”

“Over recent years, the management of Signature has created a leading global private aviation support services business, whilst streamlining the group to maximise value for shareholders,” said Sir Nigel Rudd, chairman of Signature. “We believe that the offer from GIP represents an attractive and certain value in cash today for Signature Shareholders, reflecting the high quality of the business and its network, its people and its future prospects.”

Global Infrastructure Partners had made a lower bid for the company in December, which was rebuffed by Signature.

News: Gatwick Airport co-owner outbids Blackstone to buy Signature Aviation