Benzinga | Feb 10, 2021 07:33AM EST

Archer, A Leading Urban Air Mobility Company, To List On NYSE Through Merger With Atlas Crest Investment Corp

* Archer, a leader in the Urban Air Mobility ("UAM") space commercializing electric vertical takeoff and landing ("eVTOL") aircraft, has entered into a business combination agreement with Atlas Crest Investment Corp. (NYSE:ACIC); the newly combined company will be listed on the NYSE under the new ticker symbol "ACHR."

* The business combination agreement is expected to provide approximately $1.1 billion of gross proceeds to the combined company, assuming minimal redemptions, to fund expected future growth, including a fully committed $600 million common stock PIPE with participation from leading 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.

* Pro forma equity value of the merger is expected to be approximately $3.8 billion at the $10.00 per share PIPE price.

* Archer has also signed an aircraft purchase agreement and collaboration agreement with United Airlines as part of the company's commitment to decarbonization.