Electric aircraft startup Archer Aviation announced it signed a business combination agreement with Atlas Crest Investment. The announcement confirmed news reports last week that a deal was imminent.
The business combination agreement is expected to provide approximately $1.1 billion of gross proceeds to the combined company, assuming minimal redemptions, including a fully committed $600 million common stock PIPE with participation from strategic and financial investors including United Airlines, Stellantis and the venture arm of Exor, Baron Capital Group, the Federated Hermes Kaufmann Funds, Mubadala Capital, Putnam Investments and Access Industries. Additionally Ken Moelis and affiliates, along with Marc Lore, are investing $30 million in the PIPE.
The pro forma equity value of the merger is expected to be approximately $3.8 billion at the $10 per share PIPE price.
Archer operates in the Urban Air Mobility space, commercializing electric vertical takeoff and landing aircraft. Read more.
