Valens, an Israeli startup which provides high-speed connectivity solutions – chips — for the audio-video and automotive markets, and PTK Acquisition Corp. (NYSE: PTK.U) (“PTK”), a special purpose acquisition company (SPAC), have entered into a definitive business combination agreement ahead of the Valens IPO. The combined company will be called Valens and will trade on the New York Stock Exchange under the symbol “VLN” following the close of the transaction. The new company has a valuation of $1.16 billion.
Transaction proceeds amount to approximately $240 million, including up to $115 million in trust from PTK Acquisition Corp. (assuming no redemptions) and $125 million in cash from a fully subscribed PIPE offering led by an established global institutional investor. Proceeds will be used to accelerate development and commercialization of next generation products and to fully fund the company through profitability. Valens boasts that it has shipped over 25 million chipsets worldwide and that it has high volume production with several automotive customers as well as with key major players in the audio-video industry.
Investopedia explains that a special purpose acquisition company (SPAC) is a company with no commercial operations that is formed strictly to raise capital through an initial public offering (IPO) for the purpose of acquiring an existing company. Also known as “blank check companies,” SPACs have been around for decades. In recent years, they’ve become more popular, attracting big-name underwriters and investors and raising a record amount of IPO money in 2019.
Valens Automotive calls itself a key enabler of the evolution of autonomous driving, providing the ultra-high-speed solution necessary to connect the growing number of in-vehicle sensors, cameras, radars, and lidars. The automotive chipsets are on the road in premium vehicles around the world, and the underlying technology has been selected to become the basis for the new international standard for automotive connectivity. Founded in 2006, Valens is based in Tel Aviv, Israel with offices in the US, Europe and Asia.
— Valens (@ValensAuto) May 25, 2021
Gideon Ben-Zvi, CEO of Valens said, “Valens sets the bar in every industry we touch. Our chipsets are in high volume production with several leading automotive Tier-1s and are currently on the road in Daimler vehicles. The automotive market presents an immense opportunity that will continue to grow as OEMs introduce new vehicles with far more sensors and displays than ever before. Valens’ upcoming standard-compliant chipsets are poised to revolutionize the 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 embedded into thousands of products from top-brand manufacturers.”