Another electric vehicle company is going public via the SPAC route with a new deal confirmed Wednesday.
The Deal: Arrival, a U.K. electric vehicle company, is going public via CIIG Merger Corp (NASDAQ:CIIC). The deal values the company at $5.4 billion, according to CNBC. Arrival was valued at $3.5 billion back in January.
CIIG Merger Corp is backed by Peter Cuneo, the former CEO of Remington and Marvel.
Investors in the company include UPS (NYSE:UPS), Hyundai, Kia and BlackRock.
About Arrival: One of the things that Arrival said sets the company apart from rivals like Amazon-backed (NASDAQ:AMZN) Rivian is its microfactories.
Arrival is planning on building three or four microfactories, which are smaller auto production lines that can be packed into existing warehouse real estate. The factories that are 20,000 square feet cost around $45 million to make. Each microfactory will have a goal of producing 10,000 electric vans a year.
Arrival said it stands out from rivals as it focuses on the commercial market instead of selling to consumers. The company covers production to development with full vertical integration.
UPS Deal: Arrival has a deal in place with UPS for 10,000 electric vans. The vehicles will be built specifically for UPS, which will help co-develop the vehicles.
“Taking an active investment role in Arrival enables UPS to collaborate on the design and production of the world’s most advanced electric delivery vehicles.” UPS Chief Information Officer Juan Perez said when the deal was announced.
An equity investment from UPS gives the company early access to Arrival’s vehicles and the ability to fast track orders.
UPS electric vans made by Arrival will be used in Europe and North America.
What’s Next: Arrival said it will start producing its electric buses in the fourth quarter of 2021 and electric vans in the second quarter of 2022.
The vehicles will have a price point similar or be cheaper than diesel vehicles.
Shares of CIIG Merger Corp are up 22% to $13.10 on Wednesday.