Tesla rival goes public at $ 5.4 billion valuation via SPAC set up by former Marvel Comics CEO

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  • A British Tesla-like startup is set to go public at a valuation of $ 5.4 billion through a special acquisition company formed by former Marvel Comics CEO Peter Cuneo.
  • Arrival, based in London, will partner with US company CIIG Merger. The merged company expects to list on NASDAQ under the symbol “ARVL”.
  • The arrival competes with electric vehicle maker Tesla and the creator of Amazon’s first custom electric delivery vehicle, Rivian.
  • The contracts signed by the startup currently amount to $ 1.2 billion.
  • Visit the Business Insider homepage for more stories.

British electric vehicle start-up Arrival will go public by partnering with an American “blank check company” created by Peter Cuneo, the former CEO of Marvel Comics and personal care company Remington Products.

The deal would value the merged company at $ 5.4 billion and is expected to raise a total of $ 660 million, Arrival said in a statement. The maker of electric buses and vans was last valued at $ 3 billion after receiving an investment of $ 118 million from BlackRock.

The arrival is expected to appear on NASDAQ under the symbol “ARVL” and the deal is expected to close in early 2021. It competes with Michigan-based Elon Musk and Rivian’s Tesla, which is fully backed by Amazon.

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It also counts Hyundai Motor Company, Kia Motors and United Parcel Service among its investors. UPS has already committed to placing an order for 10,000 electric vans early this year, and may increase it at some point.

Arrival said its signed contracts are worth $ 1.2 billion and its first vehicles are expected to be produced in the fourth quarter of 2021.

American businessman Peter Cuneo will join Arrival’s board of directors as non-executive chairman, while founder Denis Sverdlov will remain as CEO.

Special Purpose Acquisition Companies, or SPACs, are also referred to as “blank check” companies. These are created specifically to get a company listed on the stock market, going beyond the traditional route of an initial public offering. Their use has exploded this year. About $ 66 billion has been raised through 186 SPAC IPOs in 2020 so far, according to SPACInsider.com, more than tripling last year’s $ 13.6 billion in revenue from 59 deals.

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