Smart LiDAR Solution Company Quanergy Gets SPAC Deal: What Investors Should Know

LiDARcompany Quanergy is going public with a SPAC deal announced Tuesday.

The SPAC Deal: Quanergy is merging with CITIC Capital Acquisition Corp CCAC in a deal valuing the company at a pro forma equity value of $1.4 billion.

The company expects the deal to close in the second half of 2021. Quanergy will trade under the ticker "QNGY" on the NYSE.

Current CCAC shareholders will own 20.4% of the company after the merger is complete.

About Quanergy: One of several companies focused on LiDAR sensors, Quanergy offers a differentiating product for the market.

The company’s 100% CMOS silicon solid-state OPA technology is called “a game changer for the automotive industry” several times in the company’s presentation.

Quanergy has over 350 customers and 40 partnerships worldwide. The company has shipped more than 5,500 sensors in its history and has more than 80 active pilot programs.

Quanergy is led by Dr. Kevin Kennedy who has more than 40 years of experience in the industry including serving as the former CEO of Avaya and JDSU and serving as a senior vice president of Cisco Systems Inc CSCO.

Current investors in Quanergy include Aptiv APTV, Daimler, Enterprise and Samsung.

Related Link: Is Tesla Warming Up To Lidar?

Growth Ahead: Quanergy said it can be a market leader in the LiDAR sector. Going public and the new capital are expected to help power the company’s growth strategy and increase spending on research and development.

“Quanergy’s 100% CMOS OPA solid-state technology and 3D perception software are poised to transform the automotive and IoT industries by driving down the cost of solutions while enabling powerful levels of automation and insights,” Quanergy CEO Dr. Kennedy said.

The automotive LiDAR total addressable market is expected to reach $10.6 billion by the year 2030, according to the company’s presentation.

The internet of things LiDAR market is expected to reach $16.7 billion by the year 2030, hitting sectors such as industrial automation, security, smart spaces and mapping.

Quanergy’s OPA LiDAR is designed to have high reliability, lower costs, provide adaptive zoom and have active scanning.

Other LiDAR companies such as Innoviz Technologies Ltd INVZ, Luminar Technologies Inc LAZR and Velodyne Lidar Inc VLDR are focused on MEMS LiDAR.

Financials: Quanergy is listing expected revenue of $7 million for fiscal 2021 and $27 million for fiscal 2022. The company sees revenue hitting $549 million in fiscal 2025.

The company will target sectors such as mapping, security and smart cities with those sectors initially representing the base of revenue for the next three years.

The company will then see growth from industrial automation and automotive sectors.

Quanergy said it will have automotive represent 18% of revenue in 2025, compared to a range of 78% to 93% for most of the LiDAR companies that are publicly traded that are highly dependent on the sector.

CCAC Price Action: Shares of CCAC are down $9.93 on Tuesday at publication.

(Photo by NASA on Unsplash)