Automated software innovator Bright Machines goes public in $ 1.6 billion merger with PSPC
The transaction, which is expected to close in the second half of 2021, will see the newly formed company valued at $ 1.6 billion and listed on the NYSE with the symbol “ BRTM ”.
The announcement is the latest in a series of PSPC mergers undertaken by companies looking to go public, with deals of this nature totaling $ 11 billion in the first quarter of 2021 alone.
“At Bright Machines, our mission has been clear from the start: to bring software-defined intelligence to the factory and enable our customers to effortlessly modernize their manufacturing operations,” said Amar Hanspal, CEO and Co-Founder of Bright Machines . “Our industrial automation platform, powered by proprietary software and AI-powered solutions, enables even the most traditional manufacturing companies to quickly and easily deploy flexible automation solutions at scale.
“We believe our technology represents a big step forward in transforming manufacturing as companies adapt to growing consumer demand, intensify competition and refactor global supply chains to improve resilience and sustainability. . “
Continuing the boom in SPAC
For 3D printing companies, merging with an already listed PSPC provides them with a faster way to go public than is possible with traditionally highly regulated IPOs. PSPC mergers are often followed by a private public equity investment, or “PIPE,” where investors can buy shares in the new company at below market value in order to raise capital quickly.
Using these devices, many 3D printing companies have been able to convert market interest into significant funding opportunities over the past year.
Since Office metal reverse merger of SPAC in December 2020, companies like Rocket Lab, VELO3D, Markforged and Redwire all embarked on their own SPAC deals to gain investments and go public.
Intelligent and automated software
Founded in 2018 with the goal of bringing a software and data-centric approach to manufacturing, Bright Machines now has over 500 employees led by a seasoned management team of technology and manufacturing industry veterans, including including the former CEO of the 3D design software developer. Autodesk, Carl Bass.
“It’s clear that Bright Machines’ differentiated, software-based approach to industrial automation has the potential to completely disrupt traditional manufacturing methods,” he said of the merger. “The company has demonstrated its product-market suitability and is seeing an acceleration in customer interest and a wide deployment of their solutions. The opportunity in front of the team is simply huge. “
Currently with 36 patent filings, the company has 25 leading global clients spanning a range of industries including network infrastructure, data centers, automotive, consumer products, medical devices and industrial equipment.
With the disruption of the global supply chain brought on by a pandemic over the past year, more companies are turning to onshore or onshore production to manufacture products closer to their end users. In light of this, Bright Machines has reportedly doubled its revenue every year since its inception and forecasts a five-year compound annual growth rate (CAGR) of over 84% between 2020 and 25.
“I am very proud of the solutions we have provided and the positive benefits our customers have derived from them,” added Hanspal. “Going forward, we plan to significantly accelerate our growth and better serve our customers by doubling our software and expanding our reach through new sales channels and geographies,”
“We believe our fundamentals are strong, we are performing as expected and we are well positioned to continue to drive value and improve manufacturing results.”
Terms of the $ 1.6 billion merger
Under the terms of the merger, Bright Machines and SCVX are expected to merge in the second half of 2021 into a company that retains the “ Bright Machines ” nickname while going NYSE listed. The transaction has been approved by both boards of directors and Hanspal will continue to lead the company as CEO.
The proposed new company has been assigned an initial pro forma enterprise value of $ 1.1 billion and a post-trade equity value of $ 1.6 billion.
The transaction is expected to provide up to $ 435 million in gross cash proceeds, including $ 230 million of cash held in trust with SCVX. In addition, investors XN, Main Hudson’s Bay Fund, SB Management Limited, Fidelity Management & Research Company, and Alyeska Investment Group, will invest $ 205 million in the form of a PIPE at a price of $ 10 per SCVX share.
Bright Machines will use the funds raised to accelerate the company’s growth by expanding into new markets and developing additional software in areas such as production analysis and quality inspection.
“Bright Machines’ innovative industrial automation technology enables manufacturers to upgrade and secure their factories for the realities of the 21st century,” said Mike Doniger, CEO and Chairman of the Board of Directors of SCVX. “Geopolitical tensions and the growing threat of cyber attacks on manufacturing facilities make it even more important for companies to minimize their supply chain risks and prepare for a world of distributed manufacturing.
“The momentum we’ve seen from Bright Machines in the nascent but critical software-defined manufacturing space proves the strength of their solution and strategy. They dramatically improve the speed and economy associated with adopting smart production lines and ultimately fully programmable factories. “
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Featured images show Bright Machines is set to go public on the NYSE through a merger with the company SPAC SCVX, valued at $ 1.6 billion. Photo by light machines.