ArcLight (NASDAQ:ACTC) stock is soaring higher on Tuesday following news that the special purpose acquisition company (SPAC) plans to take Proterra public via a merger.
Starting out, here’s everything that investors need to know about ArcLight.
- ArcLight is a public company founded in 2020 with a focus on finding a merger candidate to take public.
- The company’s targets for a SPAC merger include companies with a focus on clean energy.
- Its sponsors are Arclight Capital Partners and Consolidated Asset Management Services.
- Jake Erhard leads the company as its president, CEO, and director.
- Erhard has been a partner of Arclight Capital Partners for 20 years since around the time it was founded in 2001.
Now let’s take a look at what Proterra brings to the table in the SPAC merger.
- Proterra is an electric vehicle (EV) company with a focus on buses.
- This has it creating both buses for schools as well as for public transit.
- It’s one of the largest EV bus companies in North America serving 130 communities in the U.S. and Canada.
- The company is led by chairman and CEO Jack Allen, who previously held several executive roles at Navistar International (NYSE:NAV).
- Speculation late last year claimed that Proterra might choose Qell Acquisition (NASDAQ:QELL) as its SPAC merger partner, but that isn’t the case.
Finally, here are the details about the SPAC merger between ArcLight and Proterra.
- The deal is set to value Proterra at $1.6 billion after the SPAC merger closes.
- It will also see ACTC stock changing to the PTRA stock ticker.
- Proterra is set to gain $648 million in cash from the merger.
- That includes $278 million held in trust at ArcLight and another $415 million from a private investment in public equity (PIPE).
- The two companies are expecting the deal to close in the first half of 2021.
ACTC stock was up 68.8% as of Tuesday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.