Electric aircraft startup Archer Aviation and Atlas Crest Investment today announced they have revised the valuation of their pending transaction. The new terms lower Archer’s pro forma enterprise value from $2.7 billion to $1.7 billion.
“This strategic decision was made in recognition of Archer’s commitment to driving long-term value creation for all shareholders,” the companies said in a joint press release.
Last week competitor Wisk Aero’s request for a preliminary injunction against Archer was denied by a federal judge in an ongoing legal battle alleging Archer stole trade secrets in developing its aircraft. Had the ruling gone against Archer, it would have effectively shut down the company’s operations.
Archer’s pending merger with the SPAC is still expected to receive approximately $1.1 billion of gross proceeds from a PIPE, along with approximately $500 million cash held in trust, assuming no redemptions of Atlas Crest’s existing public stockholders.
If the deal is approved, Archer will be listed on the NYSE uder ACHR. Read more.
