SPAC Revolution (RAAC) Stocks Rise 17% On Berkshire Grey Merger Plans

2 min read | February 24, 2021 05:06 PM EST | By Shreya Biswas

SPAC Revolution (RAAC) Stocks Rise 17% On Berkshire Grey Merger Plans

Berkshire Grey- Revolution Acceleration Acquisition Merger Deal – Key Highlights

Amid the rising trend of SPAC mergers, Berkshire Grey is one of the latest tech companies to be heading for a public listing. It is expected to secure cash proceeds worth up to US$ 413 million in its merger deal with SPAC Revolution Acceleration. The transaction will include a US$ 165 million private investment in public equity (PIPE) funding anchored venture capitalist Chamath Palihapitiya, among others.

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The transaction is estimated to value Berkshire Grey at US$ 2.7 billion.

Berkshire Grey said in its latest release that it expects to have US$ 507 million in cash following the completion of this deal, which it will use to fund its operations and boost growth initiatives.

The SPAC deal, the company said, is likely to be wrapped by 2021’s second quarter.

Major Berkshire Grey investors, such as SoftBank Group Corp, Khosla Ventures, New Enterprise Associates, etc., will also be rolling 100 per cent of their equity share into the merged entity.

Founded in 2013 in Massachusetts’ Bedford, Berkshire Grey deals in the business of developing systems using technologies like artificial intelligence and mobile robots for logistics purposes. It secured a revenue of US$ 35 million in 2020 and expect to turn profitable in 2024.

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