Harley-Davidson listed its electric motorcycle division LiveWire by merging with a blank check company sponsored by AEA Investors and Bridges Fund Management executives.

The agreement with the special purpose acquisition company AEA-Bridges Impact Corp (ABIC) will retain most of Harley-Davidson’s ownership, while allowing LiveWire access to capital that the open market can provide, and Taiwanese motorcycle and sports car manufacturer Kymco as the main cooperation Partners. The transaction is expected to be completed in the second half of 2022.

The funds for this transaction came from ABIC’s US$400 million held in trust, Harley-Davidson’s US$100 million investment, and Kymco’s US$100 million.

Harley-Davidson will own approximately 74% of the new combined company. SPAC shareholders will own 17%, and the remaining 4% will be held by SPAC founders and Kymco. It is estimated that the enterprise value of the combined company at the completion of the transaction is approximately US$1.77 billion, and the value of the equity after the transaction is approximately US$2.31 billion.

Harley's huge ownership gives it considerable power and supervision over LiveWire. Jochen Zeitz, Harley-Davidson's chairman, president and chief executive officer, will serve as chairman of the newly formed company. After the transaction is completed, he will serve as LiveWire's acting CEO for up to two years. Ryan Morrissey will serve as President of LiveWire.

The proceeds will be used to fund LiveWire’s listing strategy, invest in new products, and improve its global manufacturing and distribution capabilities. The newly established LiveWire company will include STACYC, an all-electric balance scooter designed for children. This manufacturing advantage will be partly provided by Kymco, and Harley stated in its investor presentation that Kymco will “enter the world’s major markets as well as light motorcycles and scooters through low-cost manufacturing.”

After the transaction is completed, LiveWire will become the first publicly traded electric motorcycle company in the United States and will be traded on the New York Stock Exchange under the code LVW.