Sparks Energy Inc., which provides storm response and other power infrastructure services, is nearing a deal to go public through a merger with 10X Capital Venture Acquisition Corp. III, a blank-check firm, according to people with knowledge of the matter.
(Bloomberg) — Sparks Energy Inc., which provides storm response and other power infrastructure services, is nearing a deal to go public through a merger with 10X Capital Venture Acquisition Corp. III, a blank-check firm, according to people with knowledge of the matter.
A transaction is set to give the combined company an enterprise value of roughly $475 million, including a $50 million earn-out provision, said the people, who requested anonymity as the information is private. A deal may be announced as soon as this week, the people said.
Founded in 2007 and led by CEO Jaradda Sparks, the Danville, Alabama-based company restores power when there are outages caused by hurricanes, floods, snow, rain and other weather events and provides maintenance and other services. Customers include Duke Energy Corp., Consolidated Edison Inc. and Oncor, its website shows. Sparks would trade on the New York Stock Exchange under the ticker “SPKS” if the transaction closes.
In a filing earlier this month, the 10X SPAC said it signed a non-binding letter of intent with Sparks without sharing details of its structure and acknowledging a final agreement wasn’t guaranteed.
Representatives for the 10X SPAC and Sparks declined to comment.
The 10X SPAC, led by Chairman and CEO Hans Thomas, raised $300 million in a January initial public offering. Last month, another 10X SPAC agreed to merge with African Agriculture.
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