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    1. Management

    Proterra to become publicly listed through transaction with ArcLight Clean Transition Corp

    Jan. 13, 2021
    This action provides resources to take Proterra's portfolio of electric vehicle technology to new levels of growth.
    Related To: Proterra

    Proterra will become publicly listed through a transaction with ArcLight Clean Transportation Corp (ArcLight).

    Upon closing, Proterra's it common stock is expected to trade on the Nasdaq under the ticker symbol PTRA. The transaction represents an enterprise value of $1.6 billion for Proterra.

    "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," said Jack Allen, chairman and CEO of Proterra. "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."

    Following the close of the transaction, Jack Allen, Proterra chairman and CEO, will continue to lead the company, and Jake Erhard, president, CEO and director of ArcLight, will join Proterra's board.

    "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," said Jake Erhard, president, CEO and director of ArcLight. "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."

    Upon completion of the transaction, Proterra says it 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 is designed to improve 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 has been unanimously approved by the boards of both Proterra and ArcLight Clean Transition Corp. It is expected to close in the first half of 2021, subject to the satisfaction of customary closing conditions, including the approval of ArcLight Clean Transition Corp.'s shareholders.

    The transaction is expected to deliver approximately $648 million in cash at closing, including approximately $278 million of cash held in ArcLight Clean Transition Corp.'s trust account from its initial public offering in September 2020. The transaction is further supported by a $415 million PIPE at $10.00 per share from key investors, including strategic partners Daimler Trucks and Constellation, existing investors Franklin Templeton, Broadscale, 40 North and G2VP, as well as new investors such as Chamath Palihapitiya, Fidelity Management & Research Company LLC, funds and accounts managed by BlackRock, Neuberger Berman Funds and affiliates of ArcLight. Proterra's existing shareholders have agreed to convert 100 percent of their ownership stakes into the new company, and are expected to own more than 60 percent of the pro forma company at close.