Valens, an Israeli startup which provides high-speed connectivity solutions – chips — for the audio-video and automotive markets, and PTK Acquisition Corp., a special purpose acquisition company (SPAC) have completed their merger as part of Valens’ initial public offering (IPO).
Valens will begin trading on the New York Stock Exchange under the symbol “VLN” and ring the opening bell today, September 30, 2021. That is four months after Valens first announced its plans to do so.
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.
The Business Combination with PTK was valued at valued at approximately $1.1 billion when it was first announced. The transaction ultimately generated approximately $155 million of gross proceeds from the cash held in trust after PTK stockholder redemptions and the private investment in public equity (PIPE) by leading institutional and strategic investors. The proceeds will be used to accelerate development and commercialization of Valens’ next-generation products and to fully fund the company through profitability.
“As the leader in high-speed digital connectivity, Valens’ transition to the public markets marks an important milestone in our corporate journey and enhances our ability to expand our high-speed, reliable connectivity solutions to several large and fast-growing markets,” said Gideon Ben-Zvi, CEO of Valens. “Valens’ chipsets are already embedded in Daimler Mercedes-Benz vehicles, and our technology was selected as the baseline for the new automotive standard for high-speed in-vehicle connectivity. Becoming a public company provides us with new sources of capital to accelerate our growth and advance our position as a leading global provider of semiconductors for high-speed connectivity solutions for the automotive, audio-video, and other adjacent markets.”
“We are proud to partner with Gideon Ben-Zvi and the Valens Semiconductor team as the company moves forward as a public company,” said Peter Kuo, CEO and Director of PTK. “As a pioneer in technologies set to define the future of connectivity, Valens is very well positioned for long-term success.”