High-speed connectivity leader in SPAC deal
The company offers chipsets for the audio/video and automotive markets that transmit video and data at multi-gigabit bandwidth over long-reach, space-efficient wiring infrastructure, guaranteeing error-free links with zero latency. The proceeds of the deal, says the company, will be used to accelerate development and commercialization of next-generation products and to fully fund the company through profitability.
“Valens sets the bar in every industry we touch,” says Gideon Ben-Zvi, CEO of Valens. “Our chipsets are in high volume production with several leading automotive Tier-1s and are currently on the road in Daimler vehicles. The automotive market presents an immense opportunity that will continue to grow as OEMs introduce new vehicles with far more sensors and displays than ever before.”
“Valens’ upcoming standard-compliant chipsets,” says Ben-Zvi, “are poised to revolutionize the global automotive industry with connectivity solutions for infotainment applications, ADAS systems and autonomous driving. In audio-video, our HDBaseT technology is a leading standard for long-range connectivity and is embedded into thousands of products from top-brand manufacturers.”
The company says it has shipped over 25 million chipsets worldwide and is in high volume production with several automotive customers as well as with key major players in the audio-video industry. Its high-speed connectivity technology was selected as the baseline for MIPI A-PHY, the new global automotive video connectivity standard, while its HDBaseT technology is a leading audio/video industry standard.
The transaction is expected to deliver approximately $240 million of gross proceeds, including up to $115 million of cash held in PTK’s trust account (assuming no redemptions) and $125 million from a fully subscribed private investment in public equity (PIPE) offering led by an established global institutional investor, as well as by Mediatek, a leading global semiconductor company for mobile, home and automotive. PTK’s sponsor will also be participating in the PIPE offering.
The business combination values the post-transaction Valens at an initial pro-forma equity value of approximately $1.16 billion.
Peter Kuo, CEO of PTK Acquisition Corp. says, “With Valens, PTK identified a rare opportunity to combine with a company that is defining the future of connectivity and is validated by multiple industry standards. With a proven track record of success, Valens is public company ready, with a large addressable market, marquee customers, and a compelling business model with a high degree of revenue visibility. We are thrilled to partner with Valens’ best-in-class management team as they leverage the capital from this transaction to fuel sustained growth and success.”
Following completion of the transaction, the combined company will be called Valens and will trade on the New York Stock Exchange under the symbol “VLN.”
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