CIIG Merger Corp. (CIIC)
Arrival said on Wednesday it had reached a deal to merge with CIIG Merger Corp. (CIIC), one of the many “special purpose acquisition companies” — or SPACs — that have proliferated in the US over the last 12 months. SPACs are shell companies, also known as “blank cheque” companies, that are capitalised and looking for deals to acquire businesses as a means to help them go public.
Arrival will be valued at $5.4bn (£4bn) once the transaction closes, the company said in a statement. The startup will raise $660m through the deal. CIIG has tapped investors Fidelity, Wellington, and BNP Paribas (BNP.PA) for an additional $400m to help fund the transaction.