United has placed an order for $1 billion of Archer’s aircraft, with an option for an additional $500 million of aircraft. A move that will advance accessible sustainable flight, and solidify Archer as an industry leader within urban air mobility, a market projected to be $1.5 trillion by 2040. Archer will also announce its definitive business combination agreement with Atlas Crest Investment Corp ("ACIC"), a special purpose acquisition company (SPAC), that will ultimately result in Archer becoming a publicly listed company. It is anticipated that the post-closing company, Archer, will be listed on NYSE with ticker symbol "ACHR".
The business combination agreement is expected to provide approximately $1.1 billion of gross proceeds to the Company, assuming minimal redemptions, to fund expected future growth, including a fully committed $600 million common stock PIPE, along with approximately $500 million cash held in trust, with participation from leading strategic and financial investors including United Airlines, Stellantis and the venture arm of Exor, Baron Capital Group, the Federated Hermes Kaufmann Funds, Mubadala Capital, Putnam Investments and Access Industries. Additionally Ken Moelis and affiliates, along with Marc Lore, are investing $30 million in the PIPE.
Pro forma equity value of the merger is expected to be approximately $3.8 billion at the $10.00 per share PIPE price.
Earlier this year, Archer announced an OEM partnership with Stellantis (formerly FCA), giving Archer access to their low-cost supply chain, advanced composite material capabilities, and engineering and design experience and enabling Archer to begin volume manufacturing eVTOL aircraft starting in 2023.