ESS Tech, a manufacturer of long-duration iron flow batteries for commercial and utility-scale energy storage applications, and ACON S2 Acquisition today announced they have entered into a definitive agreement for a business combination.
The deal values the combined company at a $1.072 billion pro forma enterprise value. The transaction will provide approximately $465 million of pro forma net cash to the combined company, assuming no redemptions by ACON S2 shareholders. Existing ESS shareholders, including its founders, will own approximately 64 percent of the combined company. As part of the transaction, ACON S2 raised a $250 million fully committed PIPE from institutional investors including Fidelity Management & Research Company, SB Energy Global Holdings Ltd, a wholly-owned subsidiary of SoftBank Group, Breakthrough Energy Ventures and BASF Venture Capital. Investors in the PIPE will own approximately 16 percent of the issued and outstanding shares of common stock of the combined company at closing.
The deal is expected to clsoe in the third quarter, pending shareholder approval. Read more.
