A Cedar Park company that focuses on electric powertrain solutions for commercial trucks has become the latest Austin area company to trade on the New York Stock Exchange.
Hyliion merged with Tortoise Acquisition Corp., a so-called “blank check company” incorporated in the Cayman Islands, which went public in September with a $345 initial public offering.
Such blank-check firms, also called special purpose acquisition companies (SPACs), have become a popular way for investors to pool capital before buying a private firm like Hyliion.
Fewer private companies went public this year through the traditional route, known as an initial public offering, even as acquisitions by SPACs became increasingly common.
In a press release October 1, Hyliion announced the completion of its business combination with Tortoise Acquisition Corp, noting the latter firm’s shareholders approved the deal September 28.
The merger will result in the combined company renamed ‘Hyliion Holdings Corp,’ and the company will trade on the stock exchange under the ticker symbol “HYLN.”
CEO and founder of Hyliion Thomas Healy commented, “The completion of our merger greatly accelerates Hyliion’s growth plans and unlocks the potential value of our business.”
“The future of commercial trucking demands reduced carbon emissions and more sustainable transportation options. Our Hybrid and Hypertruck ERX electric powertrain solutions are designed to significantly reduce greenhouse gas emissions and total cost of ownership, enabling our customers to meet both their sustainability and financial objectives.”
Access to capital markets would enable the company to “gear up for full commercialization and the mass production of our solutions,” Healy added. Through the business combination, Hyliion will receive approximately $560 million in proceeds, according to the press release.
Tortoise CEO Vince Cubbage said that his company made the deal with Hyliion because of the Texas company’s “compelling value proposition.”
Marathon Capital acted as the exclusive advisor to Hyliion and Barclays Capital acted as the exclusive advisor to TortoiseCorp. Cooley LLP and Wick Phillips LLP served as legal advisors to Hyliion and Vinson & Elkins LLP served as legal advisor to TortoiseCorp. Barclays and Goldman Sachs & Co. LLC served as joint-placement agents to TortoiseCorp.
