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Graf Industrial in talks to merge with Velodyne: Bloomberg
Posted on Monday, 29 June 2020 13:07
Blank check company Graf Industrial is in discussions to merge with US-based sensor manufacturer Velodyne Lidar, people familiar with the matter told Bloomberg.

According to the sources, the listed special purpose acquisition company (SPAC) is working with an advisor to help raise further funding for the potential transaction.

No final decision has been made at this time and Graf Industrial may decide to pursue another target, Bloomberg observed.

Velodyne creates radar-like systems for self-driving vehicles that use lasers to generate three-dimentional images of a surrounding environment.

Lidar is an acronym for light detection and ranging.

These systems are used by California-based Velodyne for sensors that help self-driving vehicles understand the surroundings.

Mercedes-Benz and Ford Motor use the group’s technology, with the latter even being a backer in the business after USD 150.00 million alongside Baidu in 2016.

Velodyne last fetched USD 50.00 million from Hyundai Mobis in October last year.

The company hired bankers in 2019 to look into an initial public offering, with hopes of fetching a valuation of USD 1.80 billion, Business Insider said at the time.

If a merger with Graf is successful Velodyne will be listed to the New York Stock Exchange without having to go through the stock market flotation process and not having to drum up investor interest.

The possible buyer was reportedly in negotiations with PureCycle Technologies, a polypropylene recycling company in April.

Shares in Graf rose 29.5 per cent to USD 15.00 at 08:09 today, giving the group a market capitalisation for USD 457.06 million.

According to Zephyr, the M&A database published by Bureau van Dijk, there have been 73 deals targeting other measuring and controlling device manufacturers announced worldwide in 2020 to date.

In the largest of these, Eddyfi NDT secures CAD 270.00 million (USD 197.19 million) funding from Novacap Management and La Caisse de Depot et Placement du Quebec.

Other targets included Shenzhen Anche Technologies, Shenzhen Topband and Shenzhen Anche Technologies.

© Zephus Ltd