The 15-year old solar inverter and electronics company will have a $600 million pre-money equity valuation when it goes public by Q2, 2023.
Tigo Energy, a provider of intelligent solar inverter, electronics and energy storage products, intends to list as a public company on the Nasdaq Capital Markets through a special purpose acquisition company (SPAC) merger with Roth CH Acquisition IV Company (ROCG), a SPAC platform managed by Roth Capital Partners and Craig-Hallum Capital Group.
If the SPAC merger succeeds, TIGO Energy will list in 2023 with the company ticker, TYGO, with current chairman and chief executive officer Zvi Alon continuing to lead the newly public company. The transaction is expected to close in Q2 23, while the solar electronics company currently has a $600 million pre-money equity valuation.
Assuming no Roth CH Acquisition IV stockholders redeem shares, the SPAC will have $117 million of cash held in trust to fund the deal. The SPAC was formed in July 2021.
Existing shareholders will not receive any cash proceeds as part of the transaction and are expected to roll their equity into the company. Current Tigo stockholders will retain approximately 82% of the ownership at close of the SPAC merger, assuming no SPAC shareholders exercise their redemption rights.
Formed in 2007, Campbell, California-based Tigo Energy’s products power residential, commercial, industrial, and utility solar systems in applications ranging from a few kilowatts to hundreds of megawatts in rooftop, ground-mounted and floating PV applications.
To date the company has secured a portfolio of 115 patents and shipped more than 10 million power electronic devices worldwide. With operations in more than 100 countries, Tigo systems generate more than 1 GWh of solar production daily.
Tigo’s competitors in the inverter market include Enphase Energy, SolarEdge Technologies, Sungrow, Generac, SMA Solar Technology, ABB and Huawei Technologies.
White & Case LLP is Tigo Energy’s counsel. DLA Piper LLP and Loeb & Loeb LLP are co-counsel to to Roth CH IV.
Tigo Investment Highlights
- Substantial long-term demand prospects for solar and energy storage solutions across global residential, commercial, and utility markets
- Differentiated hardware and software products enhance safety, increase energy yield, and lower operating costs of solar systems, allowing for significant ROI to customers
- Capital-light business model with demonstrated operating leverage
- Continued strength in bookings growth with strong backlog into 2023
- Proven leadership team with public company experience
