The merger will enable Berkshire Grey to become a publicly listed company
Berkshire Grey, a US-based robotics company, has agreed to merge with blank cheque company Revolution Acceleration Acquisition (RAAC) in a deal that values the combined company at $2.7bn.
The deal will enable Berkshire Grey to become a publicly listed robotics and automation solutions company.
Based in Bedford, Massachusetts, the pure-play robotics company provides artificial intelligence (AI) based software and hardware solutions to warehouses and logistics fulfilment centres for automating their business operations.
Berkshire Grey’s offerings are said to bring together its AI technology with differentiated hardware for creating robotic picking systems and various types of robotic mobility systems.
The company’s differentiated hardware include full robots, gripping systems, sensing systems, and machine vision systems.
Berkshire Grey founder and CEO Tom Wagner said: “Berkshire Grey was founded to help our customers compete even more favourably in the rapidly evolving worlds of retail and logistics.
“Consumer expectations have changed, putting more pressure on supply chain operations to get the right goods to the right places at the right times, as efficiently as possible. Over the last 12 months the pandemic amplified the already high pressure to transform, so today it is no longer a question of if companies might transform but how quickly.”
Berkshire Grey, which was founded in 2013, has been backed by investments from Khosla Ventures, New Enterprise Associates, SoftBank Group, and Canaan Partners.
Its merger with RAAC will give cash proceeds of up to $413m, which includes a private investment in public equity (PIPE) of $165m.
The PIPE investors include Social Capital’s founder and CEO Chamath Palihapitiya, funds and accounts managed by BlackRock, and Hedosophia.
At the time of closing, Berkshire Grey anticipates to hold nearly $507m cash. This amount will be used for funding its operations and also its new and existing growth initiatives.
RAAC CEO John Delaney said: “Today’s consumers expect a better selection of goods, at lower prices, with shipping that is immediate.
“In our judgment, Berkshire Grey’s best-in-class technology and uniquely integrated solutions provide a critical pathway for companies to adapt to these changing needs.
“The company’s strong relationships with an installed base of blue-chip clients is a testament to its ability to deliver tangible and measurable results that empower companies to compete even more effectively.”
The deal, which is subject to RAAC stockholders’ approval and other customary closing conditions, is expected to be completed during Q2 2021.