Archer announced Wednesday a merger agreement with special purpose acquisition company Atlas Crest Investment Corp. ACIC, +36.22% that will take the urban air mobility (UAM) company public. Shares of Atlas Crest Investment rocketed 37% in premarket trading. The deal, which has an equity value of the deal is $3.8 billion, is expected to close in the second quarter of 2021, will provide about $1.1 billion in gross proceeds to the combined company. Archer is developing the an all-electric vertical takeoff and landing aircraft, that is capable of transporting people up to 60 miles at 150 miles per hour. Separately, United Airlines Holdings Inc. UAL, +0.85% announced Wednesday that it completed an agreement to work with Archer as part of the airline’s effort to invest in technologies that decarbonize air travel. Archer said United has placed an order for $1 billion of Archer’s aircraft, with an option for an additional $500 million order. The stock, which went public on Dec. 18, has advanced 11.7% year to date through Tuesday, while the Renaissance IPO ETF IPO, +3.27% has rallied 16.0% and the S&P 500 SPX, +0.38% has gained 4.1%.
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