Artificial intelligence robotics company Berkshire Grey announced that it had reached an agreement to go public through a merger deal with a Special Purpose Acquisition Company Revolution Acceleration Acquisition Corp (RAAC).
In the deal the blank check company will provide Berkshire Grey with a cash amount of $413 million. After the deal has been closed, the merged company is expected to have a market valuation of $2.7 billion.
During this pandemic period Berkshire Grey which manufactures logistics automation systems has been experiencing increased online demand of its products.
“Whether it’s the retail, e-commerce, grocery or package fulfillment supply chain, there’s this mission-critical need to automate it. Berkshire Grey is essential for that to happen with their best-in-class technology,” said the CEO of Revolution Acceleration John Delaney.
After the deal has been closed, Delaney who also doubles as the founder of the company launched in December will join the Berkshire Grey’s board as a member.
The cash in this deal will comprise of a $165 million private million investment from venture capital investor Chamath Palihapitiya, multinational investment firm BlackRock Inc. (BLK) will also pump in its investment in the deal.