Tado, the German smart home energy startup, plans to go public via a SPAC at a €450M valuation


In today’s announcement, Tado, the German intelligent home firm specializing in thermostats and has more recently expanded into flexible “time of use” energy tariffs based on load shifting technology, says it is taking the next stage in its development a company. It is going public as part of a SPAC agreement.

GFJ ESG Acquisition is a German SPAC organization primarily focused on sustainable technology; the two companies will merge. The resulting business will be listed on the Frankfurt stock market. Meanwhile, the GFJ and tado are working on the PIPE transaction, which, when completed, is projected to place a value on tado of €450 million ($514 million at current exchange rates). The new company will continue to operate under the name tado.

A spokesman for trade said the company is not discussing how much money it hopes to raise via the IPO, nor when the IPO is anticipated to occur, other than to say that it would most likely take place in the first half of 2022.

Following two significant developments for tado, the company has decided to act quickly. Recently, it announced the acquisition of avatar (yes, that is how the company styles its name…), which will allow the company to expand from energy consumption hardware inside the home to software that will help customers better manage their energy consumption and costs based on both how the customer uses energy and how pricing varies depending on the fluctuations of that energy source (which can include renewable sources like solar and wind, as well as more traditional channels).

In addition, it raised $46 million in May. At the time, the business said that this would be its last round before going public, and that is precisely what is taking place right now. The total amount raised by the firm was just short of $159 million, with an outstanding roster of investors that included Amazon, Siemens, and Telefonica, among others. According to PitchBook statistics, the company’s value in previous private rounds was around $255 million, which was far lower than the €450 million it aims to attain with its market capitalization upon listing.

The transaction is noteworthy because it will mark the public debut of one of the largest green technology firms in Europe. Tado’s long-term objective is to provide services to assist in managing energy use in an end-to-end system, beginning with the power grid and ending with customers in their own homes. As of right now, that company has gone in two separate directions. Initial product offerings included intelligent thermostats, and the company has now sold more than 2 million units of the devices. When Tado began to diversify its product offerings into energy tariffs and use management, the firm was catapulted into an even larger industry based on big data, predictive analytics, and exploiting the more prominent and fragmented sectors of renewable energy and energy hardware systems.

It claims to have sold more than 2 million smart thermostats. Its energy-management technology is now connected to about 400,000 buildings and families in 20 countries, with more than 7 gigawatts of energy capacity under supervision. There are around 18,000 systems from 900 OEMs that it supports. It claims that customers who use its load-balancing technology save an average of 22 percent on heating expenditures each year.

The growing urgency of climate change and the increasing availability and affordability of services that allow customers to make informed decisions about how to minimize greenhouse gas emissions have created a new window of opportunity for green technology and clean technology enterprises. This listing demonstrates how one of them has gained enough confidence in their traction to take the risk of going public to go even further.

TADA CEO Toon Bouten said that the company is “pleased” to be working with the Global Fund for Justice (GFJ). “We are united by the same beliefs and the same enthusiasm for environmentally friendly technology.” And we are committed to working together to assist our clients to save money while also reducing their environmental impact. We are in a fantastic position to develop a more sustainable energy future if we work together.”

When the transaction is completed, Bouten will stand down as CEO. Oliver Kaltner (whose present position as President of office solutions provider Room is listed on his LinkedIn profile) will assume the CEO post, with Christian Deilmann serving as CPO and Johannes Schwarz serving as CTO. Emanuel Eibach will continue in his role as CFO. Gisbert Rühl will assume the position of chairman of the supervisory board. The supervisory board will also include Josef Brunner, Petr Makovec, Toon Bouten, and Maximilian Mayer.

“Tado and the Global Fund for Justice are committed to stepping up their efforts to combat climate change sensibly. “tado has already established itself as a market leader in the spirit of the new generation of green technology businesses,” said Gisbert Rühl, CEO of the Green Finance Institute. “We are thrilled to be able to invest cash and experience in assisting them in becoming even stronger and advancing their technological growth.” The heating and cooling of individual residences account for around 21 percent of total energy usage in the EU. When it comes to meeting the EU and Germany’s pledge to become the world’s first climate-neutral economy by 2050, there is no other option except to decarbonize the housing sector.”

As a publicly-traded company, it will provide a higher degree of transparency to the market, which will benefit the broader green technology sector. The firm now anticipates generating more than €500 million in annual sales within three years by 2025.


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