SoftBank-backed sensor maker Innoviz to go public in SPAC deal with $1.4 bln valuation

Innoviz Technologies

11/12/2020 12:00

By Ben Klayman
    DETROIT, Dec 11 (Reuters) - Innoviz Technologies, which
makes sensors for self-driving vehicles and is backed by
SoftBank  9984.T , said on Friday it will go public through a
reverse merger with blank-check company Collective Growth Corp
 CGRO.O  in a deal valuing the startup at about $1.4 billion.
    The deal will provide Innoviz with $350 million in gross
proceeds - $150 million from Collective Growth and $200 million
from private investors including another backer, auto supplier
Magna International  MG.TO , as well as Antara Capital and
Phoenix Insurance.
    The merger with Collective Growth, a special-purpose
acquisition company or SPAC, is expected to close in the first
quarter of 2021, and Innoviz will trade on the Nasdaq under the
symbol 'INVZ.'
    A SPAC is a shell company that raises money through an
initial public offering to buy an operating entity, typically
within two years.
    SPACs have emerged as a quick route to the stock market for
companies, particularly auto technology firms, and have proven
popular with investors seeking to echo Tesla Inc's  TSLA.O  high
stock valuation. 
    Other companies producing lidar sensors commonly used in
vehicle automation that have signed deals with SPACs include
Velodyne  VLDR.O , Luminar Technologies  LAZR.O  and Aeva
 IPV.N .
    "This milestone is pivotal for our continued growth and the
advancement of the autonomous vehicle industry as a whole. It
requires significant investment of time and resources," Innoviz
Chief Executive Omer Keilaf said in a statement. 
    Lidar sensors, which use laser light pulses to render
precise images of the environment around the car, are seen as
essential by many automakers to allow higher levels of driver
assistance right up to making them capable of self-driving.
    Innoviz, which has a supply deal with BMW  BMWG.DE , started
in 2016 in Israel and has raised $251 million to
date. urn:newsml:reuters.com:*:nL8N2H626Y

 (Reporting by Ben Klayman in Detroit; Editing by Tom Brown)
 ((benjamin.klayman@thomsonreuters.com; 313-600-2277; Reuters
Messaging: benjamin.klayman.thomsonreuters.com@reuters.net))