Developer of robotic exoskeletons, Sarcos Robotics, is set to go public at a $1.3 billion implied valuation via special purpose acquisition company (SPAC) Rotor Acquisition Corp ROT.
Sarcos Robotics CEO Ben Wolff appeared on Benzinga's YouTube show "SPACs Attack" Thursday for an exclusive interview.
Company History: The company was founded in 1983 and focused on prosthetic limbs, Wolff said, adding that the company evolved from a prosthetics focus to a robotics focus in the 1990s and eventually into exoskeletons in the early 2000s.
In 2007, the company was acquired by Raytheon Technologies Corp RTX where it acted as the robotics division for the company until 2015 when it became an independent company again, the Sarcos Robotics CEO said.
The company is now planning to go public via SPAC, which Wolff said provided certainty and allowed the company to tell its story in a way that a more traditional route would not allow.
Guardian XO: The company aims to bring the benefits of automation from an economic and productivity perspective to jobs that can't be automated, Wolff said, adding everything that can be automated will be automated.
The company has designed an exoskeleton, Guardian XO, to feel like a natural extension of the human body, he said.
The Sarcos Robotics CEO told Benzinga the product allows workers to do heavy manual lifting and has use cases across multiple industries including, logistics, construction, oil and gas.
One worker wearing the exoskeleton can often do the work of three to five workers, he said, adding that the cost of the exoskeleton is roughly the same as hiring a single employee.
When the company scales production, the expectation is that exoskeletons can be made for $65,000 per unit. Each unit has a six-year life in which it needs to be refurbished once after three years.
Sarcos Robotics partnered with leading Fortune 100 companies and the U.S. military to design and set specifications for the exoskeleton three years ago so the product would meet customers' needs as soon as it comes to market, the CEO said.
Commercial production of the Guardian XO is expected to start in summer 2022, he noted.
"You've almost got to try it before you believe it because it is so extraordinary," Wolff told Benzinga.
SPAC Deal Notes: The deal includes a $220 million PIPE from big names like BlackRock Inc BLK, Palantir Technologies Inc PLTR, Caterpillar Inc CAT and Schlumberger NV SLB.
The deal is expected to close in the third quarter. When that happens, the combined company's stock will be listed on the NASDAQ under the ticker symbol “STRC.”
Related Link: SPACs Attack Weekly Recap: 6 Deals, Rumors And Headline News
ROT Price Action: Shares were down 0.10% to $9.90 during after-market trading Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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