Tigo Energy, a provider of intelligent solar and energy storage solutions, has announced the signing of a definitive business combination agreement with Roth CH Acquisition IV (ROCG), a publicly traded special purpose acquisition company (SPAC) with $117 million in trust.
As per the agreement, ROCG will acquire Tigo for a pre-money equity value of $600 million, which will result in Tigo becoming a public company. The new combined company will be named “Tigo Energy, Inc.” and will be listed on NASDAQ under the ticker symbol “TYGO.”
Zvi Alon, Tigo CEO and Chairman, will continue to lead the Company along with the current management team, and existing Tigo stockholders will roll 100% of their equity into the Company.
Existing Tigo stockholders will retain approximately 82% of the ownership at the close of the company. They will not receive any cash proceeds as part of this transaction and will roll 100% of their equity into the company.
The transaction is expected to close in the second quarter of 2023 following the approvals from ROCG and Tigo stockholders and other customary closing conditions.
Assuming no ROCG stockholders exercise their redemption rights, gross proceeds of approximately $117 million will be released to the company from the trust account in connection with the transaction.
White & Case LLP is acting as legal advisor to Tigo, and both DLA Piper LLP and Loeb & Loeb LLP are acting as legal advisors to Roth CH IV.
Tigo Energy provides advanced power electronics for the solar sector. Tigo combines its Flex MLPE (Module Level Power Electronics) and solar optimizer technology with intelligent, cloud-based software capabilities for advanced energy monitoring and control for the commercial, industrial, and utility solar market segments.
With installations in over a hundred countries across all seven continents, Tigo systems generate more than 1 GWh of solar energy daily.
The company has secured a portfolio of 115 patents and shipped more than 10 million MLPE (Module Level Power Electronics) devices worldwide.
Tigo has recently unveiled its EI Residential platform, an integrated solar-plus-storage solution for the European Market, with a pilot installation in Italy and rollouts in Czechia and Germany. The system provides faster and simpler design, installation, and service while providing EU installers with flexibility and more efficient energy management.
According to Mercom’s 9M and Q3 Solar Funding and M&A Report. Total corporate funding for solar (including venture capital funding, public market, and debt financing) in 9M 2022 stood at $18.7 billion, 18% lower than the $22.8 billion raised in 9M 2021.