Electric transit bus and charging system manufacturer Proterra has announced to become a publicly listed company through a transaction with ArcLight Clean Transition Corp (ArcLight). The transaction represents an enterprise value of $1.6 billion for Proterra.
The latest deal will provide the U.S. based manufacturer up to $825 million in cash to fund growth initiatives and $415 million in PIPE investments by Daimler Trucks, Franklin Templeton, Chamath Palihapitiya, Fidelity Management & Research Company LLC, and Funds and accounts managed by BlackRock.
“After delivering our first electric transit bus a decade ago, Proterra has transformed into a diversified provider of electric vehicle technology solutions to help commercial vehicle manufacturers electrify their fleets,” said Jack Allen, Chairman, and CEO of Proterra.
“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. In addition, it introduces a partner in ArcLight that has a shared focus on sustainability and renewable energy.”
Proterra plans to use the newly injected cash for funding growth initiatives including R&D and the expansion of its next-generation battery program. This new program is designed to improve the cost and performance of Proterra's battery technology to enable the electrification of all commercial vehicle segments, helping reduce pollution, improve air quality, and safeguard the environment around the world.
Proterra has three complementary businesses: Proterra Energy which offers end-to-end turnkey charging and energy management solutions, Proterra Power that delivers battery systems and electrification solutions to commercial vehicle manufacturers and Proterra Transit serving as a leading provider of components used by electric transit bus OEMs.
“We launched ArcLight Clean Transition with a clear goal of identifying and partnering with mission-driven companies with differentiated technology, compelling growth opportunities, and a proven ability to execute,” said Jake Erhard, President, CEO, and Director of ArcLight Clean Transition Corp.
“With a portfolio of leading-edge products, a substantial first-mover advantage over its competitors, and a demonstrated ability to scale, Proterra perfectly fits these criteria.”
The latest transaction is expected to close in the first half of 2021.