Lidar SPAC deal targets automotive, IoT markets

Business news | July 1, 2021

By Rich Pell

IoT Sensing / Conditioning Automotive Optoelectronics Software & Embedded tools Data Acquisition

Quanergy is a leading provider of next-generation optical phased array (OPA) technology focused on the automotive and Internet of Things (IoT) markets, and has over 350 customers and 40 partnerships worldwide. The net proceeds from the proposed business combination, says the company, will be used to further advance its growth strategy, including accelerating research and development, funding working capital, paying down all debt and establishing a currency for potential future acquisitions.

“The market for data-rich 3D perception enabled by LiDAR has reached an inflection point of growth and scale,” says Dr. Kevin J. Kennedy, Quanergy Chairman and Chief Executive Officer. “In the last 12 months, a vibrant public LiDAR sector has been established. With this proposed transaction, Quanergy will benefit from expanding investor interest in the LiDAR sector, while also providing additional growth capital to further scale our R&D investments to serve multiple new markets with more capable and cost efficient products.”

“To democratize the LiDAR industry,” says Kennedy, “providers need both semiconductor scale and software intelligence. Quanergy’s 100% CMOS OPA solid state technology and 3D perception software are poised to transform the automotive and IoT industries by driving down the cost of solutions while enabling powerful levels of automation and insights.”

Fanglu Wang, Chief Executive Officer of CCAC adds, “Since its inception in 2012, Quanergy has developed revolutionary LiDAR technology and perception software that we believe are positioned for significant growth. We are excited to collaborate with Quanergy because the Company has game-changing technology for the automotive sector and is the only major LiDAR provider to harness the potential of OPA technology.”

The pro forma implied equity value of the combined business is $1.4 billion at the $10.00 per share private investment in public equity (PIPE) subscription price. The pro forma implied enterprise value of the transaction is $1.1 billion. Pro forma net cash is estimated to be approximately $278 million, comprised of approximately $276 million of cash held in trust by CCAC (assuming no public shareholders of CCAC exercise their redemption rights at the closing of the transactions) and $40 million from a fully committed PIPE investment of shares in Quanergy.

The Boards of Directors of both Quanergy and CCAC have unanimously approved the proposed business combination, which is expected to be completed in the second half of 2021, subject to the usual approvals and customary closing conditions. Upon closing of the transaction, the combined company will be named Quanergy Systems, Inc. and is expected to be listed on the New York Stock Exchange (NYSE) under the ticker symbol “QNGY.”

Quanergy