In a two-year search for a partner, Stephen Girsky and his VectoIQ Acquisition Corp. made a merger deal with Nikola Corp. — energizing Nikola’s plans for battery-electric and hydrogen fuel cell EVs along with a hydrogen fueling station infrastructure.
The two companies are merging under the name Nikola Corp. and will be listed on the Nasdaq under the new ticker symbol NKLA. The deal is expected to close during the second quarter, according to a statement released Tuesday.
Girsky, VectoIQ’s CEO and a former General Motors vice chairman, was searching for the right company with the ability to grow,
“Nikola was the clear winner,” Girsky said in the statement. “Nikola’s vision of a zero-emission future and ability to execute were key drivers in our decision.”
Nikola CEO and founder Trevor Milton told Automotive News that Nikola was the perfect company for VectoIQ as a full zero-emission truck manufacturer.
“We are on a roll,” Milton said in the statement. “You couldn’t ask for better news for the energy and tech industry.”
Nikola has “more than 14,000 pre-orders representing more than $10 billion in potential revenue and two-and-a-half years of production,” the statement said.
The company expects to generate revenue by 2021 with the rollout of its BEV truck. The company last month unveiled its Badger EV pickup, which is expected to have a range of 600 miles.
Fuel cell truck sales are to start in 2023. The hydrogen stations will serve commercial customers’ fleets, such as Anheuser-Busch.The mission of the merger is to create a company focused on the development of the next generation of smart transportation, according to the statement.
Podcast: Nikola Motor’s Trevor Milton on electrification, Tesla and a beer delivery (from 12/2/19)
Terms of the deal call for Girsky to join the board of directors of Nikola while allowing management inside the company to remain the same. Milton will be executive chairman, Mark Russel will be CEO, and Kim Brady will be CFO of the combined company.
The total value of the company after closing is expected to be $3.3 billion, the statement said. The transaction gives Nikola access to nearly $750 million in capital.
Proceeds from the transaction will allow Nikola to build factories, have access to more engineering resources and hire more people to prepare for the company’s European joint venture, Milton said.
The money also will allow Nikola to break ground on a manufacturing plant in Coolidge, Ariz., and begin its hydrogen fueling station infrastructure rollout, the statement said. Last month the company said it expects the refueling network to include 700 locations in North America.