California-based solar technology and energy storage firm Tigo Energy Inc. and Roth CH Acquisition IV Co. (ROCG) have announced a definitive agreement to combine businesses. Tigo will go public with the close of the transaction, which is expected in the second quarter of 2023. ROCG is a special purpose acquisition company (SPAC) with $117 million held in trust.
Tigo Chief Executive Officer and Chairman Zvi Alon and the company’s management team will stay on in their current roles. Its stockholders will roll 100% of their equity into the new company.
15-year-old Tigo develops and manufactures smart hardware and software solutions that increase the energy yield and safety of and decrease the operating costs of solar energy systems. The company’s advanced power electronics, including 10 million Module Level Power Electronics devices, have been shipped to more than 100 countries on seven continents. The technology generates more than 1GWh (gigawatt hours) of daily solar production, powering residential, commercial, industrial, and utility systems. Tigo’s portfolio includes 115 patents.
ROCG will acquire Tigo for a pre-money equity value of $600 million and will issue 60 million new shares to current Tigo stockholders as part of the agreement. If no stockholders exercise redemption rights, $117 million in gross proceeds will be released to Tigo from ROCG’s trust account.
Both companies’ boards of directors have unanimously approved the transaction, which is subject to ROCG stockholder approval and other customary closing conditions. Current Tigo stockholders will keep about 82% ownership, assuming that no stockholders exercise redemption rights.