The GFJ ESG Acquisition is a Special Purpose Acquisition Company (SPAC) based in Luxembourg. It describes itself as the first German SPAC specifically for sustainable technologies. GFJ was founded by former Klöckner manager Gisbert Rühl together with investor Florian Fritsch and former Relayr CEO Josef Brunner. Following the completion of the merger of Tado and GFJ, the combined group will be traded on the Frankfurt Stock Exchange under the name Tado SE. The two companies have now signed a letter of intent for this purpose. In connection with the merger, GFJ also intends to raise additional capital through a private investment in public equity transaction ("PIPE transaction"). The Munich startup currently assumes that the transaction will value it at an enterprise value of around 450 million euros.
A merger with a SPAC is often referred to as a backdoor to going public, as this route eliminates the processes typically associated with an IPO. Instead, the SPAC is usually launched by a sponsor, who also invests in it and assumes the entrepreneurial management of the shell company. Once a SPAC has raised sufficient funds through its own IPO, it acquires one or more unlisted companies, making them publicly tradable. The Munich-based startup Lilium went public last year through a merger with a SPAC.
“By joining forces, we are perfectly positioned”
Toon Bouten, CEO of Tado, comments:
"The Tado team is proud to be working with GFJ. We share the same values and passion for sustainable energy technologies. Together, we will help our customers reduce their environmental footprint and save money in the process. By joining forces, we are perfectly positioned to contribute to a more sustainable energy future."
And Gisbert Rühl, CEO of GFJ, adds:
"GFJ and Tado are both smartly driving the fight against climate change. Tado is already a market leader and embodies exactly what a whole wave of new greentech companies aspire to be. With capital and know-how, we want to support Tado in growing even faster and driving technology development forward. Around 21 percent of energy consumption in the EU is used for heating and cooling private households alone. If the EU and Germany want to fulfill their commitments to become the world's first climate-neutral economic region by 2050, decarbonization of the housing sector is non-negotiable."
Concrete plans for the new Tado management
Subject to the decision of the responsible bodies, it is currently planned that Oliver Kaltner will lead the company as CEO in the future. The former CEO of Leica Camera currently heads the Fritsch Group and serves as Chairman of the Supervisory Board of Orderbird. Tado founder Christian Deilmann (currently Managing Director) is to take on the role of CPO, while his co-founder Johannes Schwarz would remain CTO according to the plans. Emanuel Eibach is also to remain in the position of CFO. Gisbert Rühl is to take over as Chairman of the Supervisory Board, which Toon Bouten is also set to join. Other members of the Supervisory Board are to be Josef Brunner, Petr Míkovec, and Maximilian Mayer.
Tado claims to have sold over 2 million smart thermostats. The products control and optimize energy consumption in over 400,000 buildings and households with an aggregate capacity of 7 GW, equivalent to approximately 7,000 medium-sized wind turbines. Tado's technology has thus contributed to saving 730,000 tons of CO2. The merger is intended to enable the Munich-based company to further accelerate its growth plans and invest in its product and technology development. Tado recently acquired the Viennese startup AwattarTado expects to generate sales of more than half a billion euros by 2025.
