Tigo Energy may merge with Spak under the name Roth CH Acquisition IV at a value of 600 million dollars

Zvi Alon's Tigo Energy may merge with Spak under the name Roth CH Acquisition IV at a value of 600 million dollars. Tigo provides solar and energy storage solutions and the merger is expected to close in the second quarter of this year.
According to the merger outline, Tigo shareholders will receive 82% of the merged company. All this on the assumption that there will be no redemptions by the shareholders in Spak, otherwise, as happens a lot lately, the share of the shareholders in the absorbed company will be high while the shareholders from the public will hold a few percent.
Tigo's CEO and current chairman, Alon, will continue to lead the company together with the current management team. Alon, by the way, was the entrepreneur behind Netvision and other technology companies in the late 1990s and early 2000s, with the main company being NetManage, which traded on Wall Street and was sold at a value of 70 million.
According to the company's management, the company's products serve the residential solar market, and increase solar output, along with reducing current operating costs. The company was established in 2007 and its sales rate this year is expected to be about 80 million dollars (Tesla is among the company's customers) when the EBITDA will reach 1.5 million dollars and the bottom line the company will lose about 2.5 million dollars.
The company's field is hot, if it is hot and you see it in the value of the giants in the industry as well as in their performance - Solaredge has become the largest Israeli company in the world thanks to impressive growth - the revenues add up at a rate of over 3 billion dollars, its value is 16 billion dollars. Another (non-Israeli) competitor, Enphase Energy, trades at $42 billion and sells at a rate of $2.3 billion. So Tigo does address a large market, but its sales are marginal compared to them.
Entering the American Stock Exchange through Spak has become a problematic path - both practically and image-wise. SPAKs are platforms for introducing company-activities. They have cash and this body allows its shareholders to vote on whether they want to include a certain activity or not, so that in the end those who want stay with the acquired activity. In other words, there is a way around an issue in normal ways. No prospectus, no strict regulation.
The spac's wave of IPOs left scorched earth. These offerings turned out to be too expensive. They succeeded because there are many interests that push for success, including the sponsor-sponsor of the spac who receives many options at the same time as the move. But the other shareholders usually have no interest in staying, especially after the SPAKs actually lost more than half after the mergers. However, the field is not completely dead for two reasons - the first: the spikes must introduce activity within two years. Otherwise, they return the money to the shareholders and the second reason - a situation arises where those who determine the future of the SPAC are the sponsors and, as mentioned, they have an interest in succeeding in the merger.