Arrival and CIIG Merger Corp, a US publicly-traded special purpose acquisition company, have entered a definitive agreement for a business combination. Upon closing of the transaction, the combined company will be named Arrival Group and is expected to be listed on NASDAQ under the new ticker symbol “ARVL”.
The transaction values the combined company at an enterprise value of $5.4 billion.
Pursuant to the merger and following the share exchanges, the combined company
is expected to receive approximately $660 million in gross cash proceeds from a
combination of cash from a $400 million fully committed stock PIPE and $260
million in cash held in CIIG’s trust account
“With Arrival’s products our clients are not forced to compromise between being green
and being cost efficient. Our focus on the whole EV ecosystem, new methods of design
and production and our enabling technologies are the key to driving down the cost of
EVs and accelerating the transition to zero-emission transportation globally,” said Denis
Sverdlov, Founder and CEO of Arrival.
“CIIG’s leadership team has invaluable experience building businesses globally across a wide range of industries. We are excited to partner with them as we begin our journey to being a publicly-listed company and delivering our products to customers and cities around the world.”
“Arrival’s bold, game-changing approach to the production of electric vehicles made
the company the clear winner in our search for a partner,” said Peter Cuneo, Chairman
and CEO of CIIG.
“Operating in stealth mode for five years, Denis and his visionary team have rewritten the rules of the game for the auto industry. Arrival’s development of exceptional products using its pioneering technology and software alongside its groundbreaking new method of production can create an incredibly low TCO for customers which we believe stands them apart from everyone else in the electric vehicle industry. We look excitedly to the future and to our partnership with Arrival’s talented leadership team.”
Several blue chip companies and investment firms have invested in Arrival, including
Hyundai Motor Company, Kia Motors Corporation, Winter Capital, United Parcel Service
and funds and accounts managed by BlackRock. Hyundai and Kia are also exploring opportunities to co-develop zero-emission vehicles with Arrival.
In addition, alongside an investment in Arrival in early 2020, UPS announced a commitment to purchase 10,000 electric vans, and has the additional option to order more thereafter. Successful technology entrepreneur Denis Sverdlov will remain as Arrival’s CEO,
with ex-Cruise Head of Strategy, Avinash Rugoobur, continuing as Arrival’s President.
Mike Ableson, former VP of Global Strategy at GM, is CEO of Arrival Automotive
overseeing global production.