Lucid Motors and Churchill Capital Corp IV, a special purpose acquisition company, announced Feb. 22 they have entered into a definitive merger agreement.
CCIV and Lucid are combining at a transaction equity value of $11.75 billion. The transaction values Lucid at an initial pro-forma equity value of approximately $24 billion at the PIPE offer price of $15 per share and will provide Lucid with approximately $4.4 billion in cash, assuming no existing CCIV shares are redeemed for cash at closing.
"Lucid is proud to be leading a new era of high-technology, high efficiency zero-emission transportation," said Peter Rawlinson, CEO and CTO of Lucid. "Through a ground-up rethinking of how EVs are designed, our in-house-developed, race-proven technology and meticulous engineering have enabled industry-leading powertrain efficiency and new levels of performance.
"Lucid is going public to accelerate into the next phase of our growth as we work towards the launch of our new pure-electric luxury sedan, Lucid Air, in 2021 followed by our Gravity performance luxury SUV in 2023.
"Financing from the transaction will also be used to support expansion of our manufacturing facility in Arizona, which is the first greenfield purpose-built EV manufacturing facility in North America, and is already operational for pre-production builds of the Lucid Air. Scheduled to expand over three phases in the coming years, our Arizona facility is designed to be capable of producing approximately 365,000 units per year at scale.
"Lastly, this transaction further enables the realization of our vision to supply Lucid's advanced EV technologies to third parties such as other automotive manufacturers as well as offer energy storage solutions in the residential, commercial and utility segments," Rawlinson said.
"CCIV believes that Lucid's superior and proven technology backed by clear demand for a sustainable EV make Lucid a highly attractive investment for Churchill Capital Corp IV shareholders, many of whom have an increased focus on sustainability," said Michael Klein, chairman and CEO of CCIV. "We are pleased to partner with Peter and the rest of Lucid's leadership team as it delivers the highly anticipated Lucid Air to market later this year, promising significant disruption to the EV market and creating thousands of jobs across the U.S."
Lucid is setting new standards in performance, range and efficiency, appealing both to customers and investors committed to a zero-emission future.
The company's differentiated, proprietary EV technology, including...