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 (NASDAQ: 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 (NASDAQ: VLDR) acquisition in September this year by Graf Industrial Corp. Aeva Inc’s merger with Interprivate Acquisition Corp (NYSE: IPV) was announced in early November.

Gores Metropoulos Ord Shs Class A (NASDAQ: GMHI) and Luminar Technologies Inc (NASDAQ: 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.