Polestar, the electric-vehicle maker backed by Volvo Car Group and actor Leonardo DiCaprio, agreed to go public through a merger with a blank-check company at a roughly $20 billion enterprise valuation. The automaker founded four years ago by Sweden’s Volvo and its Chinese owner Zhejiang Geely Holding Group Co. will combine with special purpose acquisition company Gores Guggenheim Inc., according to a statement. Roughly $1.05 billion of proceeds will help Polestar bring three new models to market within the next three years.
Gores Guggenheim, led by Chairman Alec Gores and Chief Executive Officer Mark Stone, is sponsored by affiliates of Gores Group and Guggenheim Capital. It raised $800 million in a March initial public offering and expects to close the deal with Polestar in the first half of next year.
Polestar is targeting 29,000 vehicle sales this year and 290,000 deliveries for 2025, when it expects to make a roughly 9% margin on earnings before interest and taxes. It’s operating in 14 markets now and planning to be in 30 by the end of 2023.