Self-Driving Tech Startup Innoviz Talks SPAC Merger To Go Public: Report

Israeli tech startup Innoviz Technologies Ltd is reportedly deliberating a public listing in the U.S. through a merger with a special purpose acquisition company. Innoviz manufactures Light Detection and Ranging (LiDAR) sensors for autonomous vehicles.

What Happened: Bloomberg reports that blank check company Collective Growth Corp CGRO is seeking to raise between $100 million to $350 million in funding for the acquisition.

If the deal follows through, Innoviz’s merger could create a new combined entity with an aggregate valuation exceeding $1 billion.

Collective Growth, in a filing with the U.S. Securities and Exchange Commission in February this year, disclosed that it may initially consider acquisition targets from the legalized Cannabinoid industry.

Innoviz has raised $252 million from five funding rounds and 21 investors since 2016, as per Crunchbase.

Why Does It Matter: SPAC’s are gaining more popularity as a medium for raising funds in the self-driving car segment. Some of the recent SPAC mergers involving LiDAR companies include Velodyne Lidar Inc’s VLDR acquisition in September this year by Graf Industrial Corp. Aeva Inc’s merger with Interprivate Acquisition Corp IPV was announced in early November.

Gores Metropoulos Ord Shs Class A GMHI and Luminar Technologies Inc LAZR disclosed the close of their business combination on Wednesday.

Price Action: After a marginal 0.3% gain during trading hours, CGRO surged 17.8% in the after-hours to close at $11.65.