2020 has been the year of SPACs, “blank check” companies with no commercial operation which acquire other companies. SPACs have been booming in 2020, taking advantage of the hot IPO market by offering a quicker route to public markets for promising companies.
On Wednesday, CIIG Merger Corp (CIICU), a SPAC founded by former Remington and Marvel CEO Peter Cuneo, announced that it would acquire Arrival, a UK-based electric bus and van enterprise. Lead investors in the deal include Fidelity Management & Research, Blackrock, Wellington Management, and BNP Paribas Asset Management Energy Transition Fund.
Previous investors include Hyundai Motor Company which invested $110 million in January when the company was valued at $3.5 billion. Arrival already has an order of 10,000 vans from UPS with an option to order more.
After the deal is closed, Arrival will have an Enterprise Value of around $5.4 billion. The deal is expected to close by early 2021. Arrival will have $660 million in cash proceeds to ramp up production of the buses and vans which are expected to hit the market by the fourth quarter of 2021 and the beginning of 2022, respectively. It will be listed on NASDAQ under the new ticker symbol “ARVL.”