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In SPAC news this week, Allego announced a business combination with Spartan Acquisition Corp. III (SPAQ), while Swvl Inc. is said to be near a deal to go public via a merger with Queen's Gambit Growth Capital (GMBT).

Allego, Spartan Acquisition Corp. III Merger 

Allego announced a business combination with Spartan Acquisition Corp. III. Upon completion of the proposed transaction, the combined company will operate under the Allego name, and will be listed on the New York Stock Exchange under the ticker symbol "ALLG." The transaction values Allego at a pro forma equity value of approximately $3.14 billion.

Expected total gross proceeds of $702 million will fund the company's future growth through the deployment of additional public EV charging sites, as it focuses on delivering fast and ultra-fast chargers and continues to build its technology moat. Fisker (FSR) will make a $10 million private investment in the PIPE. Fisker has agreed to terms on a strategic partnership to deliver a range of charging options for its customers in Europe.

The boards of directors of both Allego and Spartan have unanimously approved the proposed business combination, which is expected to be completed in the fourth quarter subject to, among other things, the approval by Spartan stockholders and the satisfaction or waiver of other customary closing conditions.

Meridiam, the existing shareholder of Allego, will roll 100% of its equity and, together with management and former advisors, will retain 75% of the combined entity. Meridiam will continue to be a long-term strategic partner to the combined company. Additionally, the European Investment Bank will maintain its role as capital provider to Allego.

Swvl Strikes Deal to go Public

Swvl Inc., a Middle East-based ride-sharing technology startup, and Queen's Gambit Growth Capital announced that they have entered into a definitive agreement for a business combination that would result in Swvl becoming a publicly listed company. Upon completion of the proposed transaction, the combined public company will be named Swvl Holdings Corp and is expected to be listed on Nasdaq under the ticker symbol "SWVL." 

The transaction is expected to generate gross proceeds of up to approximately $445 million, which will be used to fund and accelerate Swvl's growth plan. The transaction is expected to close in the fourth calendar quarter of 2021, subject to customary closing conditions, including the approval of Queen's Gambit shareholders.

Analyst Coverage Intiations

Roth Capital analyst Justin Clare initiated coverage of RMG Acquisition Corporation II (RMGB) with a Buy rating and $17 price target. The analyst noted that RMG Acquisition Corp. II is a SPAC that reached a business combination agreement on Feb. 24, 2021 with ReNew Power, a renewable energy provider with the largest portfolio of renewable energy assets in India.

Clare expects the transaction to close shortly after the Aug. 16, 2021 vote. Further, he believes shares are attractive given ReNew's large committed pipeline, the significant opportunity for growth in India, and the high margins of the business.

Lake Street analyst Thomas Flaten initiated coverage of Mountain Crest Acquisition Corp. II (MCAD) - which has entered into a definitive merger agreement with Better Therapeutics - with a Buy rating and $19 price target. Better is a clinical-stage company developing novel, cognitive behavioral therapy-based prescription digital therapeutics, and he believes Better will capitalize on the pressing need for alternative therapeutic interventions and the promise shown by PDTs to drive long-term value, Flaten tells investors.

Upon completion of the transaction, which is anticipated in the summer, the combined company will operate as Better Therapeutics and securities are expected to be listed on Nasdaq under the symbol "BTTX." The company's first product, BT-001, is in clinical testing for type 2 diabetes and pivotal data is due in Q1, the analyst noted.

Lake Street analyst Troy Jensen initiated coverage of Galileo Acquisition Corp. (GLEO) - which has entered into a merger agreement with Shapeways - with a Buy rating and $14 price target. He views Shapeways, which has built "a highly automated, highly profitable 3D printing service bureau," as a leader in the emerging digital manufacturing market, Jensen tells investors.

On April 28, the company entered into a definitive agreement to merge with Galileo Acquisition and upon closing of the transaction, expected to occur during late summer of 2021, the combined company will be named Shapeways and is expected to remain listed on the NYSE under the new ticker symbol "SHPW."

SPAC IPOs This Week

• International Media Acquisition (IMAQ) opened on July 29 at $10.02. The company intends to pursue prospective targets in North America, Europe, and Asia, excluding China, in the media and entertainment industry.
• Software Acquisition III (SWAG) opened on July 29 at $10. The company intends to focus its search on software companies, especially those targeting enterprise vertical sectors owned by private equity and venture capital firms, as well as corporate carve-outs.
• DA32 Life Science Tech Acquisition (DALS) opened on July 28 at $9.85. The company "intends to capitalize on the complementary strengths and operating experience of its management team, board, and advisors to identify promising opportunities in the life science technology sector."
• Mercury Ecommerce Acquisition (MEAC) opened on July 28 at $9.90. The company intends to focus its search for a target business or businesses in the e-commerce technology and tech-enabled services industry in North America.
• Williams Rowland Acquisition (WRAC-UN) opened on July 27 at $9.97.