Harley-Davidson’s electric-motorcycle division LiveWire will go public through a merger with a blank-check firm in a deal valuing it at $1.77 billion.
The deal with AEA-Bridges Impact will be funded by the blank-check company’s $400 million cash held in trust and another $100 million investment each from Harley and KYMCO.
Several other prominent players in the sector have also merged with special purpose acquisition companies (SPACs) to go public.
Harley’s shares rose 11.3% in premarket trading, while those of AEA-Bridges were up 3.4%.
Jochen Zeitz, Harley’s chief executive, will be the chairman of LiveWire for up to two years following the completion of the deal.
Harley-Davidson will retain an equity interest in the company of about 74% and ABIC’s shareholders will own about 17%.
LiveWire is expected to be listed on the New York Stock Exchange under the symbol “LVW”.