The merger will enable Lucid Motors to go public, while giving nearly cash proceeds of nearly $4.4bn


Lucid Motors expects to launch the Lucid Air electric luxury sedan in 2021. (Credit: Lucid)

Lucid Motors, a US-based luxury electric vehicles (EV) manufacturer, has agreed to merge with Churchill Capital Corp IV (CCIV), a special purpose acquisition company (SPAC), in a deal that values the combined entity at around $24bn.

The deal will enable Lucid Motors to become a public listed company.

It has a transaction equity value of $11.75bn and will give the enlarged luxury EV maker nearly $4.4bn in cash. This is on the assumption that no existing CCIV shares are redeemed for cash at the time of closing the deal.

According to the parties, an investment of nearly $4.6bn is being funded by CCIV’s cash of around $2.1bn and a fully committed private investment in public equity (PIPE) of $2.5bn at $15 per share.

The PIPE investors include the Public Investment Fund (PIF), funds and accounts managed by BlackRock, Franklin Templeton, Fidelity Management & Research, Wellington Management, Neuberger Berman, and Winslow Capital Management.

Lucid Motors CEO and CTO Peter Rawlinson said: “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.”

Rawlinson will continue in his present roles as CEO and CTO, post-merger.

The company will use the proceeds from the deal for supporting the expansion of its manufacturing facility in Arizona. The facility has been used for the pre-production builds of the Lucid Air luxury sedan.

To be expanded in three phases, the facility will be capable of producing nearly 365,000 units per year.

CCIV chairman and CEO Michael Klein 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.

“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.”

The deal, which is subject to approval by the SPAC’s stockholders and other customary closing conditions, is anticipated to close in the second quarter of this year.