XL Fleet Said to Agree to Go Public Via Merger With Pivotal (1)

XL Fleet, a company that makes systems to reduce fuel consumption, has agreed to go public through a merger with blank-check company Pivotal Investment Corp. II, according to people with knowledge of the matter.

The combined company will be worth about $1 billion, including debt, said one of the people, requesting anonymity because the deal isn’t yet public.

Pivotal has held talks with potential investors about raising $150 million in new equity for the deal, which could be announced as soon as Friday, one of the people said.

Pivotal’s shares rose more than 3% in late trading Thursday. ...