An Einride Pod, an electric self-driving truck developed by Einride, which has no cabin for a driver, is shown in this undated handout photo obtained by Reuters on November 3, 2021. Einride/Handout via REUTERS
(Reuters) -Swedish autonomous trucking company Einride said on Wednesday it has agreed to go public in the U.S. through a merger with blank-check firm Legato Merger Corp III in a deal valuing the company at $1.8 billion.
The listing comes after a wave of electric vehicle startups went public during the pandemic-era SPAC boom with the aim of capitalizing on the huge demand for clean-energy vehicles and government incentives for the purchase of battery-powered cars.
However, since then a number of trucking and vehicle tech startups including Nikola, Lordstown Motors, and Proterra have gone bankrupt due to competitive pressures, operational challenges, rapid cash burn due to high production costs, and an inability to achieve profitability.
Autonomous trucking firms are looking to automate shipping and logistics amid heightened demand for quicker freight deliveries as they seek to commercialize self-driving technology, which faces sharp regulatory scrutiny.
With the listing, Einride is seeking up to $100 million of private investment in public equity to accelerate its growth. The deal is also bolstered by the $100 million it raised in October from existing and new institutional investors.
Existing shareholders of Einride are expected to own around 83% of equity after the deal closes and the company's existing management team will continue to lead the firm.
A SPAC is a shell firm that raises money through an IPO to merge with a private business and take it public, providing a quicker route to market than a traditional IPO.
Founded in 2016 and headquartered in Stockholm, Sweden, Einride's business is based on self-driving technology for freight trucks. The firm has over 25 enterprise customers including GE Appliances and has a fleet of around 200 electric vehicles.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shailesh Kuber)
