Aug 29 (Reuters) - Tembo E-LV, a unit of power

infrastructure developer VivoPower International ( VVPR ), said

on Thursday it has agreed to go public through a merger with

blank check firm Cactus Acquisition in a deal that

would value the new entity at $904 million.

Tembo specializes in battery-electric and off-road vehicles

for sectors including mining, utilities, infrastructure,

government services and humanitarian aid.

In 2020, VivoPower ( VVPR ) acquired a 51% stake in Tembo to expand

its market for electric light vehicles and sustainable energy

solutions.

The deal is expected to close by the end of the year and the

newly formed company, Tembo Group, will seek a listing on the

Nasdaq exchange.

SPAC deals have reduced significantly since a boom in 2021

due to increased regulatory scrutiny.

A special purpose acquisition company, or SPAC, is created

to raise capital through an IPO with the intention of merging

with a private company and taking it public.