eVOTOL is Archer Aviation’s next step towards sustainable travel
ARCHER AVIATION‘S EVTOL IS THE NEXT STEP TOWARDS SUSTAINABLE TRAVEL
The amount of pollution in the world in every form and manner needs serious attention to make our future generations lead a better life. Its first step is by moving to alternative energy sources to help preserve fossil fuels and mitigate air pollution. Revolutionizing travel towards sustainability Archer is a leader in the Urban Air Mobility (“UAM”) space commercializing electric vertical takeoff and landing (“eVTOL”) aircraft. The company has entered into a business combination agreement with Atlas Crest Investment Corp, a special purpose acquisition company that would result in Archer becoming a publicly listed company. Post-closing, Archer will be listed on the NYSE with the ticker symbol “ACHR.”
The eVTOL
The Palo Alto-based startup, led by co-founders and co-CEOs Brett Adcock and Adam Goldstein, was founded in 2018 with a mission to advance the benefits of sustainable air mobility and become the leader in the new era of UAM, a $1 trillion-plus market, according to leading industry research. Archer Aviation is developing the world’s first commercially viable all-electric UAM platform that will move people throughout the world’s cities in a fast, safe, sustainable, and cost-effective manner.
The fully electric vertical takeoff and landing aircraft is capable to cover a distance of up to 60 miles at 150 mph. It is estimated that Archer’s eVTOL aircraft could reduce CO2 emissions by up to 50% per passenger on a trip between Hollywood and Los Angeles International Airport (LAX), which is one of the initial cities Archer plans to launch their fleet and one of United’s largest hubs. A result of a highly accomplished team of top engineering and design talent, with a collective 200+ years of eVTOL experience, are driving this next transportation revolution. The full-scale eVTOL aircraft is expected to be unveiled in 2021.
“We founded Archer to address the environmental and societal issues caused by road transportation and urban overloading,” said Archer co-founder and co-CEO Adam Goldstein. “Through our all-electric aircraft, we are striving to curb carbon emissions, decrease traffic, and create the transportation networks of the future. What started with a handshake deal from our lead investor and advisor Marc Lore, Archer’s latest funding and acquisition news brings this vision to life in a big way, enabling us to accelerate the future of sustainable travel at scale.”
A step towards sustainability
Understanding the importance of decreasing the carbon footprint,
Archer Aviation has also signed an aircraft purchase agreement and collaboration agreement with United Airlines as part of the company’s commitment to de-carbonization. As a part of the agreement, United Airlines has placed an order for $1 billion of Archer’s aircraft, with an option for an additional $500 million of aircraft. “Part of how United will combat global warming is embracing emerging technologies that decarbonize air travel. By working with Archer, United is showing the aviation industry that now is the time to embrace a cleaner, more efficient modes of transportation. With the right technology, we can curb the impact aircraft have on the planet, but we have to identify the next generation of companies who will make this a reality early and find ways to help them get off the ground,” said United CEO Scott Kirby. “Archer’s eVTOL design, manufacturing model and engineering expertise has the clear potential to change how people commute within major metropolitan cities all over the world.”
By 2024, United Airlines along with Mesa Air Group Inc.’s would give passengers a quick, low-emission way to get to airports within the air carrier’s major hubs. Once the aircraft is in operation, United and Mesa plan to invest in a fleet of up to 200 aircraft to be operated by a partner.
The Real Deal
The transaction values the combined company at an implied $3.8 billion pro forma equity value at the $10.00 per share PIPE price. According to the announcement by United Airlines, the business combination agreement is expected to provide approximately $1.1 billion of gross proceeds to the combined company, including a fully committed $600 million common stock PIPE with participation from leading strategic and financial investors including United Airlines, Stellantis and the venture arm of Exor, Baron Capital Group, the Federated Hermes Kaufmann Funds, Mubadala Capital, Putnam Investments and Access Industries. Additionally, Ken Moelis and affiliates, along with Marc Lore, are investing $30 million in the PIPE.
Brett Adcock, Archer’s co-founder and co-CEO commented, “We’re thrilled to partner with Atlas Crest to help accelerate our goals of ushering in the next age of sustainable air mobility and enable human micro-exploration. By merging efforts with an industry innovator like Atlas Crest and one of the most successful entrepreneurs in finance,
Ken Moelis, we’re confident Archer will transform consumer travel and everyday life.” Following the business combination agreement, Archer plans to come on the heels of several leading strategic partnerships. In January 2021, Archer announced it had entered into a strategic collaboration agreement with Stellantis, with a focus on accessing its low-cost supply chain, advanced composite material capabilities, and engineering and design experience.
“Archer will provide commuters and travelers the flexibility on a global basis to live farther, commute and adventure faster and transform urban mobility in a greener, zero-emissions world,” said Michael Spellacy, CEO of Atlas Crest.