Fisker Invests in Allego EV Charging Network

Fisker Invests in EV Charging Company Allego

Barely a year following its own merger with a special purpose acquisition company (SPAC), the electric vehicle startup Fisker is now acting as an investor, providing support to EV charging company Allego.

$10 Million Investment

Fisker is contributing $10 million through a private investment in public equity (PIPE) funding, which is part of the merger between Allego and Spartan Acquisition Corp III. This merger, revealed on Tuesday, values Allego at a pro forma equity value of $3.14 billion.

Funding Details

The completed transaction is projected to provide Allego with $702 million in cash. This includes $150 million from Fisker, alongside investments from Landis+Gyr, and funds managed by Hedosophia and ECP, both London-based venture capital firms. Additional participation in the PIPE comes from funds managed by Apollo Global Management affiliates and Meridiam, Allego’s current majority shareholder.

Strategic Interest in Infrastructure

Notably, Fisker is the only electric vehicle manufacturer directly contributing to the PIPE investment. The company’s interest lies in Allego’s existing infrastructure, which encompasses over 26,000 charging points across Europe.

Partnership and Charging Benefits

Allego has announced a “strategic partnership” designed to offer a variety of charging solutions for Fisker customers in Europe. This collaboration includes a benefit where purchasers of the Fisker Ocean SUV, between the start of 2023 and March 31, 2024, will receive a complimentary year of charging on the Allego network.

Seamless Charging Experience

The two companies are also collaborating to create a streamlined and convenient charging experience for Fisker drivers utilizing Allego’s charging stations, as stated by Fisker in a separate announcement.

CEO Henrik Fisker's Statement

“Allego has consistently been a leader in the effort to establish a comprehensive, pan-European electric vehicle charging network,” stated CEO Henrik Fisker. “Our investment in the PIPE is driven by both strategic and practical considerations, ensuring our involvement in the future of EV charging networks while simultaneously providing concrete advantages to our customers.”

Fisker's Background and Challenges

California-based Fisker is planning to begin deliveries of its all-electric Ocean SUV in November 2022. However, the path to production hasn’t been without obstacles. Henrik Fisker, a seasoned automotive entrepreneur recognized for his design work on luxury vehicles such as the Aston Martin V8 Vantage, secured approximately $1 billion through last year’s SPAC merger with Apollo Global Management Inc.

This deal initially valued the startup at $2.9 billion, though expectations have moderated following the collapse of significant agreements with Volkswagen.

Outsourcing Manufacturing

Fisker is employing an outsourcing strategy for its range of electric vehicles. The Ocean will be manufactured under a long-term agreement with Magna, Inc. Furthermore, the company has entered into an agreement with Foxconn, the Taiwanese company best known for producing iPhones, to jointly develop a new EV by the end of 2023, which will be sold under the Fisker brand.