Connect with us

Tech News

Velodyne becomes latest tech company to go public using a SPAC, eschewing the traditional IPO path


Technology Updates

Velodyne becomes latest tech company to go public using a SPAC, eschewing the traditional IPO path

Velodyne Lidar, the leading supplier of a sensor widely considered critical to the commercial deployment of autonomous vehicles, said Thursday it has struck a deal to merge with special-purpose acquisition company Graf Industrial Corp., with a market value of $1.8 billion. The company said it was able to raise $150 million in private investment in…

Velodyne becomes latest tech company to go public using a SPAC, eschewing the traditional IPO path

Velodyne Lidar, the leading dealer of a sensor broadly idea about principal to the industrial deployment of self sustaining vehicles, mentioned Thursday it has struck a deal to merge with particular-cause acquisition company Graf Industrial Corp., with a market cost of $1.8 billion.

The corporate mentioned it became in a position to elevate $150 million in non-public investment in public equity, or PIPE, from contemporary institutional traders apart from present shareholders of Graf Industrial. Via the transaction, Velodyne can agree with about $192 million in cash on its steadiness sheet.

Velodyne’s founder David Hall along with backers Ford, Chinese language search engine Baidu, Hyundai Mobis and Nikon Corp. will reduction an 80% stake within the blended company. Hall will change into govt chairman and Anand Gopalan will reduction his CEO space.

The merger is anticipated to discontinuance within the third quarter of 2020. The blended company will remain on the NYSE and commerce under a brand contemporary ticker image VLDR following the discontinuance of the commerce combination, Velodyne mentioned.

The settlement marks essentially the most in style company to expose to SPACs in lieu of a broken-down IPO path of. Earlier this week, on-line aged car marketplace startup Shift Technologies launched an settlement to merge with SPAC Insurance Acquisition Corp. The newly blended company will be listed on NASDAQ under a brand contemporary ticker image. Nikola Motor also went public by a SPAC earlier this twelve months.

Velodyne will change into a publicly traded company amid a interval of consolidation within the broader self sustaining car commerce. Startups, automakers and tech giants agree with extended their timelines within the capitally intensive pursuit of constructing and deploying AVs. Some startups agree with been swallowed up by increased companies, while others agree with change into defunct. It has also introduced on automakers within the past 18 months to shift more belongings and consideration against superior driver aid systems in passenger vehicles, trucks and SUVs.

Real Life. Real News. Real Voices

Help us tell more of the stories that matter

Become a founding member

Lidar is at chance of be one in every of essentially the most crowded sub classes within the self sustaining car commerce. Lidar is a sensor that measures distance using laser mild to generate extremely true 3D maps of the arena across the auto. The sensor is idea about by most within the self-riding car commerce a key piece of know-how required to safely deploy robotaxis and various self sustaining vehicles.

Velodyne is more healthy identified for its “KFC bucket” spinning-laser lidar. The maintain became inspired by sensor failures in vehicles competing within the DARPA Large Wretchedness in 2004. Hall developed the spinning laser lidar and bought the sensors to groups competing in a future self sustaining car DARPA competitors. The KFC buckets had been the breeze-to lidar sensors for companies working on self sustaining vehicles. Waymo, lend a hand when it became appropriate the Google self-riding conducting, even aged Velodyne LiDAR sensors except 2012.

On the different hand, Spinning lidar objects are pricey and robotically complex. It spurred a brand contemporary generation of lidar startups to strive contemporary approaches. These days, there are dozens of lidar companies — some counts music upwards of 70 — making an strive to persuade automakers and AV developers to make speak of their sensors. And so they’re all aiming for Velodyne.

This contemporary generation of companies has introduced on Velodyne to conform, as neatly. The corporate launched at CES 2020 in January contemporary sensors, including a dinky $100 lidar unit known as Velabit, as neatly the VelaDome and a tool product known as Vella.

“There’s no argument about the market opportunity for lidar,” Gopalan informed TechCrunch reporter Devin Coldewey lend a hand in January. “I reflect the true dialog is about what you agree with to make with it. Others are enraged by level 2+ or 3 [autonomy, i.e. above simple driver assistance] — what we’re seeking to make is short-circuit that way. The most bright motive it’s no longer being adopted at lower levels is ticket. If I thunder it is seemingly you’ll presumably presumably agree with lidar for a hundred greenbacks, pointless to claim you’re going to make speak of it. Below a hundred greenbacks, it is seemingly you’ll presumably presumably’t even factor within the functions you open up: drones, house robotics, sidewalk robots.”

The corporate has spent the past several years enraged by reducing the value of its lidar, apart from diversifying its portfolio. The Velabit is appropriate one instance of the corporate’s efforts to lock in customers exterior of the AV commerce. The diminutive sensor doesn’t agree with the capabilities wished for self sustaining vehicles. As an different, Velodyne sees an application for the sensor to be aged on smaller industrial robots.

Be taught More

Subscribe to the newsletter news

We hate SPAM and promise to keep your email address safe

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Popular Posts

To Top