Luminar, a US-based automotive lidar technology developer backed by corporates Corning, Cornes and Volvo Cars, agreed to a reverse merger yesterday with special purpose acquisition company (SPAC) Gores Metropoulos.
The transaction is expected to close in the fourth quarter of 2020 and includes $400m in cash held by Gores Metropolous, which floated in a $375m initial public offering in February 2019. Luminar will take the SPAC’s Nasdaq listing and is expected to have a market capitalisation of about $3.4bn.
The deal will also involve $170m of financing anchored by automotive manufacturer Volvo Cars’ Tech Fund, car dealership operator Van Tuyl Companies, Crescent Cove, Moore Strategic Ventures and VectoIQ as well as private investors Alec Gores and Nick and Jill Woodman.
Founded in 2012, Luminar is developing a lidar sensor and software to facilitate autonomous driving systems in consumer vehicles and commercial trucks. It technology is expected to be integrated in Volvo’s vehicles from 2022.
Proceeds from the reverse merger will help Luminar accelerate business growth and expand its product roadmap. It has already hired a team of engineers from electronics conglomerate Samsung’s self-driving platform, Drvline, to work on technology development activities.
Alec Gores, chief executive of Gores Metropoulos, will join Luminar’s board of directors and the latter’s management team will continue to lead the company.
Luminar revealed in July 2019 it had raised a total of $250m in funding from investors including Volvo Cars Tech Fund, specialty glass producer Corning and diversified conglomerate Cornes.
The company’s other backers are G2VP, Moore Strategic Ventures, Westly Group, 15177 Fund, Canvas Ventures, Crescent Cove, Octave Ventures, Nick Woodman and two unnamed sovereign wealth funds. The $250m figure included a $100m funding round closed shortly before the announcement.
