In Monday's premarket, Harley-Davidson shares jumped more than 12% after the company announced it will merge LiveWire, its electric motorbike division, with AEA-Bridges Impact Corp, a special purpose acquisition company.

LiveWire now has a $1.77 billion market capitalization. The decision comes at a time when startups around the world are stealing market share from established businesses that rely on fossil-fuel-powered vehicles.

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The $545 million in revenues from the purchase will be used to speed the introduction of LiveWire's products and expand the company's global manufacturing and distribution capabilities, according to Harley.

Through a PIPE, ABIC will fund the transaction with $400 million in funds held in trust, a $100 million investment from Harley-Davidson, and a $100 million investment from KYMCO.

Harley-Davidson would possess roughly 74% of the combined company, ABIC stockholders will own nearly 17%, and ABIC's founders and KYMCO will each own around 4%.

The deal is scheduled to be completed by the end of June.


LiveWire is Harley's attempt to portray itself as an all-electric motorbike firm aimed at the urban market.