June 25, 2024

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Automotive Chip Company Agrees to SPAC Deal

Automotive chip and software package company Indie Semiconductor reported Tuesday it will go general public by way of a blank-verify merger to raise cash for its enlargement attempts.

The merger with distinctive objective acquisition company Thunder Bridge Acquisition II values the combined business at $1.four billion, which will trade as Indie Semiconductor on the Nasdaq exchange.

Upon closing of the deal, the new Indie will receive up to $495 million in income, including the $345 million that Thunder Bridge raised last year from its have original general public offering. The SPAC was fashioned by trader Gary Simanson, a previous CEO of Initial Avenue National Financial institution.

“[Indie CEO] Donald McClymont and his team have set up a leadership franchise with a differentiated product or service offering, having transported above one hundred million units to Tier 1 automotive suppliers globally,” Simanson reported in a information launch.

“By advantage of our combination, we consider that indie will have the financial firepower to speed up the company’s strategic advancement initiatives and assistance generate an autotech pureplay powerhouse,” he additional.

Indie, is primarily based in Aliso Viejo, Calif., and was founded in 2007. It makes sensors for electric and autonomous autos that empower highly developed driver help programs, including LiDAR, and connected car, user working experience, and vehicle electrification applications.

The business reported its addressable market is expected to exceed $38 billion by 2025 and that its strategic backlog posture is valued at a lot more than $2 billion. But it lost $17 million on revenue of just $23 million in 2019, in accordance to a presentation that accompanied the merger announcement, and does not count on to turn a financial gain until finally 2023.

“We are thrilled to lover with Thunder Bridge II at this vital advancement juncture to capitalize on our current style and design acquire pipeline, prolong Indie’s product or service reach, and drive scale and further more consolidate within autotech,” McClymont reported.

On information of the deal, Thunder Bridge’s shares jumped 2.6% to $10.sixty nine in investing Tuesday.

automotive, Indie Semiconductor, semiconductors, SPAC