Clean energy tech firm ConnectM to merge with Monterey Capital to go public
Monterey Capital Acquisition has agreed to acquire ConnectM Technology Solutions, a clean energy technology and solutions provider, for an implied pre-money equity valuation of $145 million.
Under the merger agreement, the newly combined entity will operate under the name ConnectM Technology Solutions and anticipates to become a public company through listing on Nasdaq.
ConnectM Technology Solutions anticipates using the proceeds from the transaction to fund additional growth initiatives and customer acquisition strategy.
The company offers clean energy technology and solutions for residential and light commercial buildings as well as all-electric original equipment manufacturers (OEMs).
ConnectM Technology Solutions with more than 22,000 customers and 12 OEMs between the company’s Aurai and Yantra platforms, is expected to offer substantial upsell opportunities.
Bhaskar Panigrahi — ConnectM Technology Solutions Chairman and CEO said: “We are thrilled to partner with MCAC as our missions are directly aligned and the partnership is complementary.
“We believe we have chosen the ideal partner as we embark on our journey towards becoming a public company, which we expect will provide us with capital to fuel expansion and growth plans.
“… we have laid the proper foundation to support our expansion and future endeavors as we offer a single connected operations platform through our Aurai and Yantra offerings for all electric assets.”
Aurai is an electrification, decarbonization and energy efficiency platform while Yantra is ConnectM Technology Solutions’ electric vehicle (EV), micro mobility, and fleet management platform.
Bala Padmakumar — Monterey Capital Acquisition Chairman and CEO said: “Upon formation in 2021 and Monterey’s IPO in 2022, our commitment and intent communicated to our investors was to be thoughtful and ‘right-sized’ in the SPAC market, targeting companies in the clean energy transition economy.
“We then leveraged our very well-connected management and board to vet over 20 clean energy transition companies.”
Expected to close in the second quarter of 2023, the merger is subject to approval by the US Securities and Exchange Commission and other customary closing conditions.
Monterey Capital Acquisition is a blank check company formed for the purpose of effecting a business combination.