Archer to Combine With SPAC Atlas Crest Investment
Palo Alto – March 10, 2021 – Cooley advised Archer, a leader in the urban air mobility space, on its agreement to combine with special purpose acquisition company Atlas Crest Investment. Estimated to have an implied $3.8 billion pro forma equity value, the combined company will list on the New York Stock Exchange under the symbol “ACHR.” Partners Dave Peinsipp, John McKenna and Al Browne led the Cooley team advising Archer on the transaction, which is expected to close in Q2.
“Through our all-electric aircraft, we are striving to curb carbon emissions, decrease traffic and create the transportation networks of the future,” Archer co-founder and co-CEO Adam Goldstein said in a news release. “What started with a handshake deal from our lead investor and advisor Marc Lore, Archer’s latest funding and acquisition news brings this vision to life in a big way, enabling us to accelerate the future of sustainable travel at scale.”
The combined company is expected to receive approximately $1.1 billion of gross proceeds from a fully committed common stock PIPE offering of $600 million, along with approximately $500 million cash held in trust, assuming minimal redemptions of Atlas Crest’s existing public stockholders. Net cash from the transaction will be used to fund Archer’s development to commercialization.
Based in Palo Alto, California, Archer’s mission is to advance the benefits of sustainable air mobility through creation of the world’s first electric airline that moves people throughout the world’s cities in a quick, safe, sustainable and cost-effective manner. As the world’s only vertically integrated airline company, Archer is designing and developing electric vertical takeoff and landing aircraft for use in urban air mobility that can carry passengers for 60 miles at speeds of up to 150 miles per hour while producing minimal noise.
About Cooley LLP
Clients partner with Cooley on transformative deals, complex IP and regulatory matters, and high-stakes litigation, where innovation meets the law.
Cooley has 1,100+ lawyers across 16 offices in the United States, Asia and Europe.