This is one of more than 500 battery powered buses Proterra has manufactured and sold in the U.S. … [+]
Proterra photo
Proterra, an electric bus and battery manufacturer, will go public through a merger with ArcLight Clean Transition Corp., in a special purpose acquisition deal, values at $1.6 billion.
The transaction will generate $648 million in cash and an additional $415 million in investments from a group that includes Daimler Trucks, Franklin Templeton, Fidelity Management and funds managed by BlackRock
BLK
Once the deal is completed, Proterra shares will be listed on the Nasdaq
NDAQ
The deal comes three months after Burlingame, Calif.-based Proterra, raised $200 million from an investment group led by Cowen Sustainable Advisors, Soros Fund Management, Generation Investment Management and Broadscale Group.
Special purpose acquisition companies (SPACs) are shell companies which raise money by agreeing to invest in startup ventures with the commitment to take them public within two years. They have become a frequently-used channel for new companies in the electric vehicle, battery and autonomous transportation industries.
According to Bloomberg, SPACs raised $79.2 billion in 2020.
“This transaction enables Proterra to take the next step towards our mission of advancing EV technology to deliver the world’s best performing commercial vehicles,” said Proterra Chairman and CEO Jack Allen, in a statement. “In addition, it introduces a partner in ArcLight that has a shared focus on sustainability and renewable energy.”
Allen will remain as CEO of Proterra, while Jake Erhard, ArcLight Clean’s president, will join Proterra’s board of directors.
Proterra shareholders agreed to convert 100% of their shares into the new company. They will own more than 60% of the new company when the transaction closes.
Dale Hill, a mechanical engineer, founded Proterra in 2004 in Golden, Colorado.
Proterra has about 500 transit buses deployed with 120 customers in the United States and Canada who collectively logged more than 14 million miles of service. Thomas Built Bus, Van Hool, BusTech and Optimal-EV are all customers of Proterra.
The company’s vehicles produce zero tailpipe emissions and decrease dependency on fossil fuels. Each time a Proterra battery-electric bus replaces a diesel vehicle, greenhouse gas emissions are reduced by more than 200,000 pounds.
