Aeva to Go Public: $2.1 Billion SPAC Merger

Aeva, a lidar firm headquartered in Mountain View, California and founded by two former Apple engineers, is set to merge with InterPrivate Acquisition Corp., a special purpose acquisition company. Porsche SE provides backing for Aeva, and the resulting entity will have a market valuation of $2.1 billion following the completion of the transaction.

The agreement with InterPrivate, spearheaded by private equity investor Ahmed Fattouh, is anticipated to be finalized in early 2021. Aeva represents the newest organization to bypass a conventional initial public offering (IPO) in favor of becoming a publicly traded company through a merger with a SPAC. This also marks the third lidar company, after Velodyne and Luminar, to utilize this method for entering the public markets.

Lidar, which stands for light detection and ranging, is a remote sensing technology that uses light to measure distances. It is widely regarded within the developing autonomous driving sector as a crucial and essential sensor. Velodyne previously held a dominant position in the lidar industry, providing its products to the majority of autonomous vehicle (AV) developers. In recent years, numerous startups have emerged, each aiming to gain a portion of Velodyne’s market share by offering unique variations of the technology and business models.

Conventional lidar systems calculate distance by emitting powerful light pulses outside the visible light spectrum and then measuring the time it takes for each pulse to return. The direction and distance to the object that each pulse encounters are recorded as a point, ultimately creating a three-dimensional map.

Aeva’s founders, Soroush Salehian and Mina Rezk, have created what they refer to as “4D lidar,” capable of measuring both distance and instantaneous velocity without compromising range, while also mitigating interference from sunlight or other sensors. The company’s FMCW (Frequency Modulated Continuous Wave) technology also requires less power, enabling the integration of perception software. While initially designed for autonomous vehicles and advanced driver-assistance systems, Salehian notes that their technology is also attracting attention from the consumer electronics industry.

Aeva’s innovations have resulted in several partnerships and customers, along with investment from Porsche Automobil Holding SE, the largest shareholder within the VW Group. In September, Aeva announced a production collaboration with Tier 1 supplier ZF to provide automotive-grade 4D lidar systems.

Upon completion of the merger, the combined company will be known as Aeva Inc. and will continue to be listed on the New York Stock Exchange under the ticker symbol “AEVA.”

Aeva successfully secured $120 million in private investment in public equity (PIPE), including contributions from Adage Capital and Porsche SE. The combined entity will have approximately $363 million in gross proceeds, encompassing the $243 million currently held in trust by InterPrivate and the $120 million raised through the PIPE investment. Existing Aeva shareholders, including Lux Capital, Canaan Partners, and Lockheed Martin, will maintain their equity stakes as Aeva transitions into a publicly listed company.