Another electric vehicle company is going public through the SPAC route with a new deal confirmed on Wednesday.
The deal: Arrival, a British electric vehicle company, goes public via CIIG Merger Company (NASDAQ: CIIC). The deal values the company at $5.4 billion, according to CNBC. The arrival was valued at $3.5 billion in January.
CIIG Merger Corp is backed by former Remington and Marvel CEO Peter Cuneo.
The company’s investors include UPS (NYSE: UPS), Hyundai, Kia and BlackRock.
About arrival: One of the things Arrival said sets the company apart from its rivals like Amazon-supported (NASDAQ: AMZN) Rivian is its micro-factories.
Arrival plans to build three or four micro-factories, which are smaller automotive production lines that can be integrated into existing warehouses. The 20,000 square foot factories cost around $45 million to manufacture. Each micro-factory will aim to produce 10,000 electric vans per year.
Arrival said it sets itself apart from its rivals by focusing on the commercial market instead of selling to consumers. The company covers production through development with full vertical integration.
UPS offer: Arrival at a deal in place with UPS for 10,000 electric vans. The vehicles will be built specifically for UPS, which will participate in the co-development of the vehicles.
“Playing an active investment role in Arrival enables UPS to collaborate in the design and production of the world’s most advanced electric delivery vehicles.” UPS Chief Information Officer Juan Perez said when announcing the deal.
A capital investment from UPS gives the company quick access to Arrival’s vehicles and the ability to expedite orders.
The UPS electric vans manufactured by Arrival will be used in Europe and North America.
And after: Arrival announced that it will start producing its electric buses in the fourth quarter of 2021 and its electric vans in the second quarter of 2022.
Vehicles will be priced similarly or cheaper than diesel vehicles.
Shares of CIIG Merger Corp rose 22% to $13.10 on Wednesday.
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