Harley Davidson’s electric motorcycle subsidiary Livewire saw its stock surge 24% today following news of a merger with AEA-Bridges Impact Corp.
Harley Davidson (NYSE: HOG) started their Livewire (NYSE: LVWR) brand in 2014 when they unveiled a prototype electric motorcycle. Since then, the company was selling the Livewire motorcycle under the Harley Davidson brand name but has since separated the bike into its own brand. Livewire has been listed on the NYSE and now has merged with a Special Purpose Acquisition Company (SPAC), AEA-Bridges Impact Corp (NYSE: IMPX.U).
With the investment from the SPAC, not only did shares jump 24%, but Livewire was given a valuation of $1.77 billion, according to the SPAC’s website. Looking further into the SPAC, their investment focus is broad as they look to invest in “sustainable businesses,” which drew the SPAC to invest.
“We are at the confluence of two seminal shifts impacting the industry – vehicle electrification and sustainability…” says John Garcia, Chairman, and Co-CEO of AEA-Bridges Impact Corp, “LiveWire is well-positioned to become the premier sustainable electric motorcycle brand and redefine the industry by leveraging the manufacturing and distribution expertise of Harley-Davidson and KYMCO. We’re excited to partner with Harley-Davidson and the LiveWire team to help define the future of electric motorcycles as the industry continues its rapid transformation.”
The press releases from Harley, AEA Bridges Impact, and Livewire have not indicated plans for the brand. Still, at the very least (as the SPAC Chairmen noted), they are well positioned by being reasonably early to the electric motorcycle market.
So far, Harley is one of a select few manufacturers in the electric motorcycle market. Zero Motorcycles and Enercia are examples of startups in the space, but more prominent names such as Yamaha, KTM, BMW, or Kawasaki have remained absent. Honda, the world’s largest motorcycle manufacturer, recently announced their plans to offer electric motorcycle options worldwide, but they have yet to come to fruition.
The biggest challenge facing Livewire is price. Hopefully, through continued investment such as the one today, the brand will be able to make electric motorcycles more price competitive with gas counterparts.
Disclosure: William is not invested in any companies related to the Livewire merger.
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