Velodyne Lidar, a US-based 3D mapping technology developer backed by corporates Baidu, Ford, Nikon and Hyundai Mobis, has agreed to list on the New York Stock Exchange through a reverse merger, it revealed yesterday.
The company will merge with special purpose acquisition company Graf Industrial at which point the latter’s ticker symbol will be updated to VLDR.
The transaction will be supported through a $150m private-investment-in-public-equity deal and will value the combined company at approximately $1.8bn. Velodyne’s existing shareholders will receive up to $50m in cash and will retain an 83% stake in the business.
Spun off from audio equipment producer Velodyne Acoustics in 2015, Velodyne Lidar has created light, detection and ranging (lidar) sensors to facilitate self-driving automotive systems and power a driver assistance software product called Vella.
The deal follows reports a year ago that Velodyne had hired investment banks Bank of America Merrill Lynch, Citigroup, Royal Bank of Canada and William Blair for an initial public offering expected to take place by the end of 2019.
The company will look to expand growth following the deal and explore potential strategic acquisitions. Velodyne’s executive team will remain in place, including the retention of David Hall as executive chairman.
Velodyne most recently secured $50m in funding from automotive parts manufacturer Hyundai Mobis in October 2019 in conjunction with a strategic partnership agreement.
Imaging equipment manufacturer Nikon had already invested $25m in the company in late 2018, after internet group Baidu and carmaker Ford had combined to inject $150m in capital two years earlier.
