Valens accepts $ 1.16 billion PSPC merger

Israeli chip maker Valens Semiconductor announced today that it has signed a merger agreement with U.S. Special Purpose Acquisition Company (SPAC) PTK Acquisition Corp. After the merger closes, Valens will trade on the NYSE under the symbol VLN at a valuation of $ 1.16 billion.

According to IVC, Valens has raised $ 167 million in five rounds of funding, the last of which was in late 2018 for a company valuation of $ 500 million. Valens has developed chips that provide high speed connectivity solutions for the audio-video and automotive markets. The company has 270 employees, most of them in its Israeli offices in Hod Hasharon.

The transaction is expected to generate gross proceeds of $ 240 million, including up to $ 115 million in cash held in PTK’s trust account (assuming no redemptions) and $ 125 million from a Fully subscribed PIPE offering led by an established global institutional investor, as well as Mediatek, a global leader in semiconductors for mobile, home and automotive. PTK’s sponsor will also participate in the PIPE offer. The funds will be used to accelerate the development and commercialization of next-generation products and to fully fund the business to profitability.

Valens was founded in 2006 by Dror Jerushalmi, Massad Eyal, Eyran Lida, Gaby Gur Cohen, Nadav Banet and Alon Benzaray and is currently chaired by CEO Gideon Ben-Zvi. Investors include Israel Growth Partners (IGP), Genesis, Magma, Mitsui Global, Oppenheimer, Delphi, and Samsung Catalyst. Last year, Valense rationalized by laying off 10% of its workforce and subsequently 20 more employees.

Valens achieved revenue of $ 57 million in 2020, forecasts revenue of $ 67 million in 2021, and forecasts revenue of $ 482 million in 2026. Adjusted EBITDA was less $ 16 million in 2020 and is not expected to turn positive until 2024 with an EBITDA target of $ 204 million in 2020. 2026. Today most of the revenue comes from audio-video, but in the years in the future, the auto market will provide most of the income.

Valens CEO Gideon Ben-Zvi said: “Valens sets the bar in every industry we touch. Our chipsets are in high volume production with several Tier-1 automotive leaders and are currently on the road in vehicles. Daimler. The automotive market presents a huge opportunity. Which will continue to grow as OEMs introduce new vehicles with many more sensors and displays than ever before. Valens’ upcoming standards-compliant chipsets are set to revolutionize the industry. global automotive industry with connectivity solutions for infotainment applications, ADAS systems and autonomous driving. In audio. -video, our HDBaseT technology is a leading standard for long range connectivity and is built into thousands of products from major brand manufacturers. “

Peter Kuo, CEO of PTK Acquisition Corp., said: “With Valens, PTK has identified a rare opportunity to partner with a company that defines the future of connectivity and is validated by multiple industry standards. ready, with a large addressable market, reputable clients and a compelling business model with a high degree of revenue visibility. We are delighted to partner with the best management team at Valens, as they are leveraging the capital from this transaction to fuel sustainable growth and success. “

BofA Securities acts as the exclusive financial advisor to Valens, while Citigroup, BofA Securities and Oppenheimer are co-placement agents on PIPE.

Posted by Globes, Israel Business News – – May 25, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Leave a Reply

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