X Energy SPAC Merger: $2B Nuclear Deal
- X Energy, a nuclear power technology firm, is merging with Ares Acquisition Corp.(ACC),a special purpose acquisition company (SPAC),in a deal valuing the combined entity at $2 billion.
- Upon completion of the merger, current equity holders in X Energy are expected to hold more than 60% of the combined company.
- The transaction,which will bring X Energy to the public markets,is anticipated to close in the second quarter of 2023.
X Energy, a nuclear power technology firm, is going public through a $2 billion SPAC merger with Ares Acquisition corp., a move that will reshape the landscape of advanced nuclear energy. Existing X Energy equity holders are poised to retain a majority stake as the deal progresses, signaling strong confidence in the company’s future. The merger,expected to finalize in Q2 2023,includes $1 billion from Ares’ trust and $120 million in financing,bolstering X Energy’s ambitious growth strategy and commitment to a lower-carbon economy. This announcement from news Directory 3 unveils the firm’s innovative path and future endeavors amid a changing energy landscape. Curious about what’s next for X Energy?
Nuclear Energy Firm X Energy to Go Public via $2B SPAC Merger
X Energy, a nuclear power technology firm, is merging with Ares Acquisition Corp.(ACC),a special purpose acquisition company (SPAC),in a deal valuing the combined entity at $2 billion. ares Acquisition was founded in 2020 and is backed by Ares Management,a private equity firm.
Upon completion of the merger, current equity holders in X Energy are expected to hold more than 60% of the combined company.
The transaction,which will bring X Energy to the public markets,is anticipated to close in the second quarter of 2023. The combined company is expected to receive approximately $1 billion in cash from AAC’s trust account,along with $120 million in committed financing from institutional and strategic investors. X Energy also secured about $58 million in interim financing earlier in the year from existing strategic investors, including Dow and Curtiss-Wright Corporation.
David Kaplan, co-founder of Ares, co-chairman of Ares Private Equity Group, and co-chairman and CEO of AAC, said that Ares and X-energy share a strong commitment to driving the transition to a lower-carbon economy through innovation in climate infrastructure.
What’s next
With the merger expected to close in the second quarter of 2023, the newly public company aims to advance its nuclear power technology and contribute to the transition to a lower-carbon economy. the influx of capital will support X Energy’s growth and growth initiatives in the nuclear energy sector.