The autonomous vehicle technology company and blank-check firm ACP Holdings Acquisition Corp. announced Wednesday that they have agreed to merge in a transaction that would take May Mobility public at a $1.4 billion pro forma enterprise value, marking a major step for a company seeking to move autonomous transportation from testing grounds into everyday city life.

The transaction is expected to close by the end of the year. Following completion, the combined company is expected to operate under the name May Mobility Inc. and trade on the Nasdaq.

More Than 550,000 Autonomous Rides Completed

May Mobility says its technology has already moved beyond the experimental stage.

The company has completed more than 550,000 commercial autonomous rides covering approximately 1.1 million miles across the United States and Japan.

Three of those programs have reached what May Mobility calls “driver-out” operations, meaning neither a human safety driver nor an operator was physically present in the vehicle.

The milestone offers a glimpse of an industry moving from controlled demonstrations toward real-world transportation, where each mile becomes another test of whether autonomous vehicles can earn a place on busy city streets.

May Mobility Expands Its Commercial Footprint

May Mobility currently operates commercially in three U.S. locations.

Its autonomous service operates with Lyft in Atlanta, while the company also provides autonomous ride services in Eden Prairie and Grand Rapids, Minnesota.

The company is preparing for another major expansion. May Mobility plans to launch a service with Uber in Arlington, Texas, by early next year.

Its network of strategic partnerships extends beyond the United States. The company said it has a planned multiyear relationship with Grab, the Southeast Asian super app, while Toyota Motor Corp. serves as its primary original equipment manufacturer, or OEM, partner.

CEO Says Public Listing Can Accelerate Growth

May Mobility CEO and founder Edwin Olson said the company was created around the idea that navigating a city should not consume people's time, compromise their safety or limit their freedom.

He said becoming a public company will help make that vision accessible to more people at a faster pace.

Olson also pointed to May Mobility's relationships with major companies, saying partnerships can help the autonomous vehicle business reach a scale that would be difficult for any single company to achieve alone.

ACP Sees Commercial Traction

ACP Holdings Acquisition Corp. is a special purpose acquisition company affiliated with Atlas Credit Partners.

ACP Chairman and CEO Andrew Mallozzi, who also founded Atlas, said the investment firm was drawn to May Mobility's approach to autonomous transportation, particularly what he described as its differentiated and capital-efficient model.

Mallozzi also cited the company's commercial progress, technology validation and network of strategic partners as factors behind ACP's interest in the transaction.

Deal Could Generate Up to $337 Million

The merger is expected to provide gross proceeds of up to $337 million, although the final amount will depend on how many of ACP Holdings' public shareholders redeem their shares.

The financing package includes as much as $217 million from ACP's trust account, also subject to shareholder redemptions.

Another $120 million is coming through a fully committed private investment in public equity, commonly known as a PIPE. An affiliate of Atlas Credit Partners is co-anchoring that investment.

Major Legal and Financial Advisers Join Deal

Latham & Watkins LLP is advising May Mobility on the transaction, while DLA Piper is representing ACP Holdings.

O'Melveny & Myers LLP is representing Cantor Fitzgerald, which is serving as ACP's exclusive financial adviser and lead capital markets adviser. Cantor Fitzgerald is also acting as the lead placement agent for the PIPE financing.

If completed as planned, the transaction will place May Mobility on the public markets while giving the autonomous vehicle company additional capital and visibility as it expands its commercial operations across the United States and internationally.