Florida-based Sunergy Renewables to go public via $475 million SPAC deal

Zeo Energy

19/04/2023 14:10

April 19 (Reuters) - Solar energy company Sunergy
Renewables said on Wednesday it will go public via a merger with
blank-check firm ESGEN Acquisition Corp  ESAC.O  in a deal that
will value the combined company at $475 million.
    Sunergy, which was founded in 2005, provides solar and
battery-based power as well as storage systems for residential
use in Florida, Texas and Arkansas.
    "The proceeds from the transaction will help Sunergy scale
more rapidly to meet the current demand we are seeing from our
customers," Sunergy Chief Executive Tim Bridgewater said.
    Following the completion of the transaction, expected in the
fourth quarter, the combined company will be listed on the
Nasdaq.
    A special purpose acquisition company, or SPAC, is a
publicly listed shell company that raises funds with the
intention of merging with a private company within two years of
floating its shares. The private firm goes public through the
merger.
    The SPAC sector has been torpedoed by several scrapped deals
since last year as market turbulence due to inflation and rising
interest rates spook startups looking to go public.

 (Reporting by Sourasis Bose in Bengaluru; Editing by Shounak
Dasgupta)
 ((Sourasis.Bose@thomsonreuters.com))