- Sunlight Financial LLC will go public via a merger with Spartan Acquisition Corp. II (NYSE: SPRQ) , a special purpose acquisition company.
- The deal values new entity at $1.3 billion and includes up to $*.* billion in cash proceeds, $*** million of which will be provided through a Palihapitiya-led private investment in the public entity.
- The move came after Palihapitiya unveiled he is finalizing another investment in a SaaS company
Chamath Palihapitiya has found his next SPAC target — Spartan Acquisition Corp. II (NYSE: SPRQ), a publicly-traded special purpose acquisition company sponsored by funds managed by an affiliate of Apollo Global Management, Inc. (NYSE: APO) which will merge with Sunlight Financial LLC, a B2B2C fintech platform that provides residential solar contractors .
According to Palihapitiya this is a business that “powers a lot of progress in an area that is very important to me and they partner with some great companies to do it” Palihapitiya said on Twitter on Tuesday evening, adding today how Sunlight is a leader in the residential solar boom.
The move came just six days after Palihapitiya unveiled his next move will be “a new climate investment”. The billionaire gained success with his first SPAC transaction that took Virgin-Galactic, a space-tourism company, public last year and has been particularly active in the SPAC world in 2020. Palihapitiya previously revealed he has reserved tickers from “IPOA” through “IPOZ” on the NYSE.
The business combination reflects an estimated implied pro forma equity value at closing of $1.3 billion. In connection with the transaction, investors led by Chamath Palihapitiya, Coatue, funds and accounts managed by BlackRock, Franklin Templeton and accounts advised by Neuberger Berman Investment Advisers LLC have committed to invest $250 million in a private purchase of Spartan’s Class A Common Stock at $10.00 per share immediately prior to the closing of the transaction.
“Spartan and Apollo are committed to being ESG leaders. We are excited to team up with Sunlight to enable the energy transition by providing affordable, responsible financing for customers to own their residential solar systems,” said Geoffrey Strong, CEO of Spartan and Senior Partner, Co-head of Infrastructure and Natural Resources at Apollo. “Matt and the Sunlight team have built an outstanding, proprietary fintech platform to pursue that mission. The business has substantial operating leverage, which well prepares Sunlight to grow and profit for years to come.”
Many investors and companies interested in going public turn to the blank-check route given its upsides for companies as well as certainty of execution. Companies can also skip the roadshow process and avoid some of the scrutiny that goes with a traditional IPO.
Spartan Acquisition II Corp (NYSE: SPRQ) stock price is up more than 30% during pre-market session on Monday, following latest development.