A leader in electric two-wheeled hardware and battery swap solutions is going public via a SPAC merger announced Thursday.
The SPAC Deal: Gogoro Inc announced a SPAC merger with Poema Global Holdings Corp PPGH.
The deal values Gogoro at an enterprise value of $2.35 billion.
A PIPE on the SPAC deal includes investments from existing investors Hon Hai Precision Industry Co., Ltd. - ADR HNHPF — better known as Foxconn — and GoToGroup, the largest technology group in Indonesia.
The company will trade as GGR on the Nasdaq if the merger is approved. The deal is expected to close in the first quarter of 2022.
Current PPGH shareholders will own 13.1% of the new company.
About Gogoro: Global technology leader in battery swapping solutions, Gogoro launched in Taiwan in 2015. The company’s solutions provide a limitless range with battery swapping and can help customers in seconds rather than hours to charge their batteries.
“Gogoro is transforming urban mobility in the world’s most densely populated cities by changing how people use and share portable energy,” Gogoro CEO and founder Horace Luke said.
Gogoro has had more than 400,000 battery swap subscribers since launching. The company has provided more than 200 million battery swaps since launching.
Current partnerships for Gogoro include Yamaha, AeonMotor, CMC eMoving and Tailing eReady, a joint venture with Suzuki in Taiwan.
The company was founded by Luke, who previously worked at Microsoft Corporation MSFT as a founding member of the Xbox leadership team. Luke also worked at HTC where he helped the company gain the number-one market share position in global smartphones.
Growth Ahead: The company’s presentation highlighted the fact that 14 of the world’s most populous cities are in Asia. Eight of the world’s most congested cities are located in Asia.
The merger could provide Gogoro with $550 million in proceeds, which the company will use to continue its international expansion and increase research and development efforts.
“Building off of this success, we have announced our expansion into China with Yadea and DCJ and into India with Hero MotoCorp,” Luke said.
Yadea is the world’s largest electric two-wheel maker and DCJ is the number one gas-powered two-wheel maker in China. Yadea currently has a 23% market share in China.
China is the largest electric two-wheel vehicle market with an estimated 325 million on the road, compared to 14 million in the company’s current market of Taiwan.
Hero MotoCorp is the leading two-wheel vehicle maker in India, which has an estimated 165 million two-wheel vehicles on the road.
The company is targeting a launch in the fourth quarter of 2021 in China and the fourth quarter of 2022 for India.
The company will expand beyond China and India in the future according to its presentation.
Financials: Gogoro had revenue of $364 million in fiscal 2020. The company is targeting revenue of $327 million in fiscal 2021 and $500 million in fiscal 2022.
In fiscal 2023, the company is projecting revenue of $925 million with $578 million from Taiwan, $283 million from China and $64 million from India.
PPGH Price Action: PPGH shares are trading down 0.41% at $9.83 at publication Thursday morning.
Photo: Courtesy Gogoro
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