Add another solar PV module-level power electronics (MLPE) provider to the public company list. Tigo Energy is agreeing to a “business combination” with Roth CH Acquisition IV Co., a publicly-traded special purpose acquisition company with $117 million held in trust. This will result in Tigo becoming a public company. The transaction is expected to close in the second quarter of 2023.
If all goes according to plan, the combined company will be named “Tigo Energy, Inc.” and will be listed on NASDAQ under the ticker symbol “TYGO.”
ROCG will acquire Tigo for a pre-money equity value of $600 million. In connection with the transaction, ROCG will issue 60 million newly issued shares to current stockholders of Tigo (subject to any adjustment for capital raising transactions by Tigo prior to the closing).
Existing Tigo stockholders will not receive any cash proceeds as part of this transaction and will roll 100% of their equity into the Company. Assuming no ROCG stockholders exercise their redemption rights, gross proceeds of approximately $117 million will be released to the Company from the trust account in connection with the transaction.
The boards of directors of Tigo and ROCG have unanimously approved the transaction. The transaction will require the approval of the stockholders of ROCG and is subject to other customary closing conditions. The transaction will also require the approval of the stockholders of Tigo by written consent or at a meeting of the stockholders of Tigo.
Upon closing of the transaction, Tigo’s senior management will continue to serve in their current roles. Current Tigo stockholders will retain approximately 82% of the ownership at close of the Company, assuming no ROCG stockholders exercise their redemption rights.
To date, Tigo has secured a portfolio of 115 patents and shipped more than 10 million MLPE devices worldwide. The company’s products power everything from single-digit kilowatt residential systems to commercial, industrial (C&I)-scale systems. We recently dove into its new Pure Signal technology on an episode of The Pitch: