Xos, a manufacturer of electric Class 5 to Class 8 commercial vehicles, has announced an agreement to go public through a merger with NextGen Acquisition (Nasdaq: NGAC). The combined company will trade on Nasdaq with the new ticker symbol XOS.

The transaction values the combined company at a $2-billion pro forma equity value, and is expected to provide $575 million of gross proceeds to the company.

Xos says it has a backlog of over 6,000 “contracted and optional orders.”

“Since 2019, we have had vehicles on the road and in the hands of our customers, which include UPS, Wiggins, Lonestar and Loomis, validating our durable and low-cost sustainable design,” said Xos co-founder and COO Giordano Sordoni. “Today’s announcement represents a major milestone that allows Xos to expand its vehicle and battery manufacturing capacity, advance our next-generation battery and vehicle control systems, and put thousands more Xos vehicles on the road.”

Xos’s trucks are powered by its proprietary technology, which was developed to meet the needs of commercial fleets. The company offers a Fleet-as-a-Service package that provides vehicle ownership services to fleet operators for a fixed monthly fee—in coordination with partners such as DLL Group (financing services) and Dickinson Fleet Services (vehicle maintenance).

“NextGen reviewed over a hundred potential merger opportunities and conducted in-depth evaluations of several companies in the EV and automotive technology sectors,” added Gregory Summe, Co-Chairman of NextGen. “Based on our work, we believe that Xos is best-positioned to capture the rapidly growing demand for commercial electrical vehicles with a compelling customer offering.”

Source: Xos Trucks