The Lion Electric Co., a maker of electric vehicles such as yellow school buses, is in talks to go public through a merger with blank-check firm Northern Genesis Acquisition Corp., according to people with knowledge of the matter.
Northern Genesis has begun discussions with prospective investors about raising a targeted $500 million in new equity to support a transaction, said some of the people, who requested anonymity because the talks are private.
The merged entity is set to be valued at $2 billion or more, one of the people said. As with all deals that aren’t yet finalized, it’s possible terms could change and talks could collapse.
A representative for Lion Electric declined to comment. A representative for Northern Genesis didn’t immediately respond to a request for comment.
Power Sustainable Capital, a subsidiary of Power Corp. of Canada, is Lion’s largest shareholder.
Battery-makers and other companies in the electric vehicle space have flocked toward SPACs for capital. At least five have agreed to go public by merging with a special purpose acquisition company, including Nikola corp and Fisker Inc.
Northern Genesis raised $300 million in an initial public offering in August.