Oct 3 (Reuters) - Solar technology firm Complete Solaria Inc has agreed to go public in the United States through a merger with a blank-check vehicle in a deal valued at about $888 million, the companies said on Monday.
The deal with Freedom Acquisition I Corp is backed by private equity giant Carlyle Group and billionaire entrepreneur T.J. Rodgers. It is expected to fetch up to $376 million in gross proceeds, assuming no redemptions from the special purpose acquisition company's (SPAC) trust account.
The merger comes at a challenging time for the SPAC market in the United States, as regulatory scrutiny tightens and rising volatility spooks investors, triggering higher redemptions.
Once Wall Street's hottest ticket, SPACs have also seen souring sentiment due to poor stock performance of companies that merged with them. The De-SPAC Index, which tracks some of these companies, is down over 60% so far this year.
SPACs are publicly listed companies that are raised with the intention of merging with a private company, which goes public through the merger.
After the deal closes, expected in the first half of 2023, Complete Solaria will trade on the New York Stock Exchange under the new ticker “CSLR”. (Reporting by Manya Saini in Bengaluru; Editing by Maju Samuel)