In February, Volta Industries Inc. announced its intentions to merge with Tortoise Acquisition Corp. II (NYSE:SNPR). The proposed merger will see the combined company list on the New York stock Exchange under the ticker symbol VLTA.
The merger has an implied equity value of over $1.4 Billion and is expected to provide the combined company $600 Million in cash proceeds. The proceeds will help fund and accelerate Volta’s buildout of its charging network already in the pipeline.
With many questions to be answered, this article will breakdown everything investors need to know about the SNPR merger.
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Key details of the Volta & SNPR merger
- Volta’s charging stations benefit brands, consumers, and real-estate locations by providing valuable advertising space to businesses and free charging to drivers.
- The estimated $600 Million in net proceeds includes a $300 million PIPE investment at $10.00 a share and the remainder of the proceeds is held in the SNPR trust account. The funds will be used to “accelerate product commercialization, product production, demand generation efforts, operational growth and for general corporate purposes.”
- The company first disclosed the merger would close sometime in the second quarter of 2021. With June 30 now behind us, investors expect both companies to be close to finalising the merger and announcing a vote date.
“Volta’s unique business model is poised to capture the vast consumer spending shifts that will accompany our society’s shift from carbon to electric,” said Scott Mercer, Founder and CEO of Volta.
What investors need to know about Volta?
Firstly, over the past decade Volta has built a nationwide electric vehicle charging network. The Volta charging stations are among the most used in the United States currently. Volta aims to capitalise on Megatrend tailwinds including electrification, decarbonization, digital media and big data.
The company noted in a February investor presentation that Volta installed 1,507 charging stations in 2020. Furthermore, the company expects to install 3,142 stations this year and 6,492 in 2022. The company also noted the $500 Billion refuelling market will be up for grabs for EV charging companies like Volta as the world transitions to zero carbon.
Financial outlook of Volta Industries
Volta Industries generated $25 Million in revenue last year with majority of the revenue resulting from their charging network segment. Looking ahead, the company expects to generate $47 Million in 2021 and $141 Million in 2022.
By 2025, the company expects to generate $826 Million in revenue with the charging network driving 56% of sales.
In the same year, the company also expects to install 26,242 charging stations. The company noted that Volta’s average 2021-2023 gross margin percentage is 10% higher than EV charging competitors. Overall, the company looks well positioned to benefit from the EV tailwind based on the companies revenue growth outlook.
Summary of the SNPR merger
In summary, the proposed merger between SNPR and Volta is closing in on finalisation. The emerging market that Volta aims to tap into is clearly an exciting prospect for investors.
In particular, the revenue guidance provided by the company highlights the emerging market opportunity. At this stage, investors await a confirmed date for the shareholder vote which will be one of the final steps in the merger.
Overall, SNPR will be one to watch over the next few weeks.
The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
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