(Reuters) - Electric vehicle maker Nikola Corp said on Tuesday it plans to list on the Nasdaq by merging with a publicly traded special purpose acquisition company (SPAC), backed by investors including Fidelity and ValueAct.
After the reverse merger with VectoIQ Acquisition Corp, the combined company will be named Nikola Corp and be valued at more than $3.3 billion, Nikola said.
The transaction will be funded by VectoIQ cash in trust and a $525 million private placement of common stock at $10 per share, led by institutional investors including Fidelity Management & Research Company and ValueAct Spring Fund.
A SPAC uses proceeds from an IPO, along with borrowed funds, to acquire companies that are usually privately held.
Last month, SPAC Far Point Acquisition Corp agreed to acquire shopping tax refund firm Global Blue in a $2.6 billion deal.
Virgin Galactic was taken public in July through a similar merger with Social Capital Hedosophia Holdings Corp.
The Nikola-VectoIQ transaction, expected to close in the second quarter of 2020, has been approved by the boards of both companies and the combined company will be listed on the Nasdaq under the new ticker symbol NKLA.
The merged company will be led by Trevor Milton, CEO of Nikola, and controlled by Nikola shareholders.
Nikola’s Chief Financial Officer Kim Brady will continue in his role after the deal, the company said.
Reporting by Abhishek Manikandan in Bengaluru; Editing by Shinjini Ganguli