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Joby Aviation takes flight into the public markets via a SPAC merger

Joby Aviation, a startup that has spent a more than a decade developing an all-electric, vertical take-off and landing passenger aircraft, will become a public company through a merger with Reinvent Technology Partners, a special purpose acquisition company from well-known investor and LinkedIn co-founder Reid Hoffman.
The combined company, which will be listed on the New York Stock Exchange, will have a pro forma implied valuation of $6.6 billion. Through the deal, Joby is capturing $1.6 billion in cash proceeds — $690 million of which will come from Reinvent’s cash in trust and an $835 million from private investors The Baupost Group, funds and accounts managed by BlackRock, Fidelity Management & Research LLC and Baillie Gifford. A $75 million convertible note, from Uber, will also be converted into common stock at a $10 per share value.
While blank-check mergers typically put in place terms to prevent investors from pulling out their money, this one places a lock up on all major shareholders, including on the SPAC side, to ensure significant long-term alignment. The deal also includes an earnout structure with full vesting that cannot be realized until the share price reaches $50 per share, which implies more than a $30 billion market capitalization.
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