EV manufacturer Arrival and Kensington Capital Acquisition V announced a definitive agreement for a business combination at an implied pro forma enterprise value of $524 million.
If approved, upon closing Arrival shares are expected to list on the Nasdaq under the ticker symbol ARVL.
Kensington has $283 million of cash in trust, before redemptions. Combined with Arrival’s cash on the balance sheet as of Dec. 31, the combined company would have approximately $468 million of pro forma cash to fund its commercialization plans, including the build-out of its manufacturing facility in Charlotte, North Carolina.
Founded in 2015, Arrival aims to revolutionize the Class 4 EV segment. Its XL Van is purpose-built to target the high-margin, last-mile delivery market, which Arrival said it believes is currently underserved by large-scale OEMs. Arrival’s vans are designed and manufactured through a flexible in-house method that it expects to result in streamlined integration, significantly reduced time from concept to market, lowered capital expenditures, and a superior user experience. Read more.
