LiveWire, the Harley-Davidson electric motorcycle company, goes public by merging with a Special Acquisition Company, or SPAC. The transaction will earn LiveWire approximately $ 545 million at a pro forma enterprise value of approximately $ 1.77 billion, Harley-Davidson said in its announcement. LiveWire is the latest electric vehicle company to go public by merging with PSPC, also known as “blank check” companies.
LiveWire Merges With AEA-Bridges Impact Corp. (ABIC), a SPAC formed by John Garcia and Michele Giddens, two private equity executives based in New York and London respectively. Garcia and Giddens teamed up last year for the express purpose of merging with a company that works to achieve the United Nations Sustainable Development Goals, according to Reuters.
Unusually, there is a third partner in the business: Kymco, the Taiwan-based scooter maker. Harley-Davidson describes Kymco as a “strategic partner” who will help manufacture and distribute LiveWire’s electric motorcycle.
The deal will be funded by “ABIC’s $ 400 million held in trust, a $ 100 million investment from Harley-Davidson, and a $ 100 million investment from KYMCO, through a PIPE (private investment in public capital). ) “, reads the press release. Upon closing of the transaction, the shares of LiveWire will be listed on the New York Stock Exchange under the symbol “LVW”.
Earlier this year, Harley-Davidson decided to turn LiveWire into its own brand, with the goal of launching several electric motorcycles under the nameplate. The first product of this effort is LiveWire One, a $ 21,999 electric motorcycle with a range of around 145 miles (depending on the type of ride).
It’s a similar move to how the 118-year-old company approached its new brand of e-bikes, Serial 1. The idea is for LiveWire to continue to benefit from its relationship with its parent company while forging its own identity as brand that is distinct from Harley Davidson. The company telegraphed the move into its Hardwire strategic plan to reinvigorate its declining sales over the next five years. This dedicated division would be “exclusively focused on leading the future of electric motorcycles,” the company said in its plan.
According to Harley-Davidson:
LiveWire plans to redefine motorcycling as a leader in the fully electric motorcycle industry, with a focus on the urban market and beyond. As a strong and desirable brand with growing global recognition, LiveWire plans to develop the technology of the future and invest in the capabilities necessary to lead the motorcycle transformation. LiveWire will build on its DNA as an agile disruptor to the Harley-Davidson lineage, capitalizing on a decade of learning in the electric vehicle industry and the iconic legacy of the world’s most desirable motorcycle brand.
LiveWire is the latest in a growing line of electric vehicle startups, autonomous vehicle companies and automotive suppliers to go public by merging with “blank check” companies, which are investment vehicles listed in stock Exchange.
There have been a few hits, such as Lucid Motors’ mega-SPAC which valued the luxury electric vehicle company at $ 20 billion. But there were also some notable flops. Lordstown, Canoo and Nikola are among the electric vehicle companies that suffered downturns after their IPO. (Even Lucid is now the subject of an SEC investigation.) It feels like rushing to profit from the PSPC boom, these startups have faced the demands of being listed on a large scale. stock Exchange.