- The stock price of Arclight Clean Transition Corp (NASDAQ: ACTC) increased by 106.73%. This is why it happened.
The stock price of Arclight Clean Transition Corp (NASDAQ: ACTC) increased by 106.73% as it went from a previous close of $12.19 to $25.20 on January 12. The biggest reason why the stock priced surged is due to Proterra — a company that makes electric buses and batteries — agreeing to go public through a merger with Arclight Clean Transition. This transaction represents an enterprise value of $1.6 billion for Proterra and it includes $415 million in PIPE investments anchored by Daimler Trucks as well as Franklin Templeton, Chamath Palihapitiya, Fidelity Management & Research Company, and funds and accounts managed by BlackRock.
Proterra is known as being a high-growth commercial electric vehicle technology leader with over a decade of production experience. And the company has designed an end-to-end flexible technology platform that delivers world-class performance and a low total cost of ownership to original equipment manufacturers (OEMs) and end customers. Proterra has 3 complementary businesses, including Proterra Powered (Delivering battery systems and electrification solutions to commercial vehicle manufacturers); Proterra Transit (Leading North America as the market’s #1 electric transit bus OEM); and Proterra Energy (Offers end-to-end turnkey charging and energy management solutions).
And the company’s battery systems have been proven in more than 16 million service miles driven by its fleet of transit vehicles and validated through partnerships with world-class commercial vehicle OEMs like Freightliner Custom Chassis Corporation (FCCC), Thomas Built Buses, Van Hool, Bustech, and Optimal-EV. So far, Proterra has produced and delivered more than 300 megawatt-hours of battery systems, over 550 heavy-duty electric transit buses, and installed 54 megawatts of charging systems.
Proterra operates manufacturing facilities in California and South Carolina as well as a state-of-the-art R&D lab in Silicon Valley. And the company recently announced the opening of a new battery production line co-located in its electric transit bus manufacturing facility in Los Angeles County. This battery production line was established within a year and demonstrates the company’s ability to bring its scalable and capital-efficient battery manufacturing process directly to commercial vehicle OEMs alongside their existing manufacturing.
Upon the close of the transaction, Proterra’s Chairman and CEO Jack Allen will continue to lead the company and ArcLight Clean Transition president and CEO Jake Erhard will join Proterra’s board.
Proterra generated $193 million of expected 2020 revenue, $750 million in existing orders and backlog, and 26% gross margin expansion over the last three years. And upon completion of the transaction, Proterra expects to have up to $825 million in cash to fund growth initiatives, including R&D and the expansion of its next-generation battery program.
This new program was designed for improving 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.
The transaction was unanimously approved by the Boards of Directors of both Proterra and ArcLight Clean Transition Corp.
The deal is expected to close in the first half of 2021.
KEY QUOTES:
“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. Our success is in no small part thanks to a dedicated team of employees that are committed to innovation and forward-thinking solutions. 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. We look forward to working closely with the ArcLight team as we create value for our shareholders and customers, scale our business to new levels and benefit the world around us.”
— Jack Allen, Chairman and CEO of Proterra
“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. 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. We look forward to working closely with the Proterra team to execute its strategic priorities and deliver shareholder value.”
— Jake Erhard, President, CEO and Director of ArcLight Clean Transition Corp.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.
