Hyzon Motors Inc has agreed to go public through a merger with blank-check firm Decarbonization Plus Acquisition Corp in a deal that values the fuel-cell truck startup at $2.7 billion, it said on Tuesday.

The electric vehicle market has seen a surge in companies choosing mergers with special purpose acquisition companies (SPACs) as the route to go public instead of traditional initial public offerings.

EV charging network EVgo Services LLC and EV maker Faraday Future are set to go public later this year through mergers with SPACs, which are shell companies that raise funds through an IPO to take a private company public.

Decarbonization Plus will fund the Hyzon deal through a private investment of $400 million from investors, including funds and accounts managed by BlackRock Inc and private investment firm Riverstone Energy.

The transaction is expected to result in total gross proceeds of about $626 million.

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Source: Reuters