SoftBank-backed robotics firm Berkshire Grey to go public via $2.7 bln SPAC deal (updated)

Berkshire Grey

24/02/2021 12:00

(Adds transaction details, background)
    Feb 24 (Reuters) - SoftBank-backed robotics firm Berkshire
Grey said on Wednesday it has agreed to go public through a
merger with a blank-check firm in a deal that values the
combined company at $2.7 billion.
    The deal is expected to provide Berkshire Grey about $413
million in cash, as the maker of logistics automation systems
looks to take advantage of a surge in online shopping amid the
COVID-19 pandemic.
    The proceeds include a private investment of $165 million
anchored by venture capital investor Chamath Palihapitiya and
funds and accounts managed by BlackRock Inc  BLK.N .
    Palihapitiya has been one of the most prolific sponsors of
special purpose acquisition companies (SPACs), merging them with
a range of companies - from space tourism firm Virgin Galactic
Holdings Inc  SPCE.N  to home-selling platform Opendoor
Technologies Inc  OPEN.O .
    The former Facebook executive has also taken part in PIPE
(private investment in public equity) rounds of companies that
went public through SPAC deals, including metal 3D printing
technology provider Desktop Metal, rare earths miner MP
Materials and electric bus manufacturer Proterra.
    Current investors of Berkshire Grey, including venture
capital firm Khosla Ventures, SoftBank Group Corp  9984.T ,
Canaan Partners and New Enterprise Associates will be rolling
their full equity stake into the combined entity.
    Founded in 2013 by Chief Executive Officer Tom Wagner,
Berkshire develops artificial intelligence-based logistics
automation systems, which are used by its customers - Walmart
Inc  WMT.N , Target Corp  TGT.N  and FedEx Corp  FDX.N  - in
their warehouses and distribution centers.
    SPACs are shell companies that raise money in an initial
public offering to pursue an acquisition at a later date. They
serve as an alternative to a traditional IPO for companies
looking to enter public markets.
    Berkshire Grey will merge with blank check firm Revolution
Acceleration Acquisition Corp  RAAC.O  and trade on the Nasdaq
after the deal closes.
    Credit Suisse Securities (USA) LLC and J.P. Morgan
Securities LLC served as exclusive financial advisers to
Berkshire Grey and Revolution, respectively.

 (Reporting by Sohini Podder and Anirban Sen in Bengaluru;
Editing by Saumyadeb Chakrabarty)
 ((sohini.podder@thomsonreuters.com;))