Lidar company Quanergy Systems Inc. today announced its intention to go public through a special-purpose acquisition company merger with CITIC Capital Acquisition Corp.

The deal values Quanergy at $1.1 billion, with the combined companies having an implied equity value of $1.4 billion. CCAC had previously raised $240 million in an initial public offering on the New York Stock Exchange in February 2020. Under the deal, Quanergy shareholders will own 72% of the merged company and CCAC shareholders 20%, while the remaining shares will go to outside investors.

Founded in 2012, Quanergy is a Silicon Valley-based technology company that designs and offers lidar sensors and perception software for real-time capture and processing of 3D spatial data and object detection. Quanergy’s sensors have five primary tracking areas: 3D mapping, security, smart cities and smart spaces, social distancing and industrial automation. Several of those tracking areas cross into transportation as well.

The company describes itself as a leading provider of next-generation optical phased array technology focused on the automotive and internet of things markets. OPA provides nonmechanical scanning in a compact form factor that enables simultaneous scanning, pointing and tracking of multiple objects.

Quanergy’s OPA-based solid-state lidar is designed to provide high reliability with no moving parts and a very low cost. All OPA elements are integrated into a single silicon module, meaning they can be produced at price points suitable for mass-market deployments. In addition, the sensor’s adaptive zoom allows the sensor to zoom in and out on obstacles automatically and provides for advanced scanning that supports electronic beam tracking for both horizontal and vertical scanning.

The company comes into its SPAC merger with more than 350 customers and 40 partnerships worldwide. Notable customers include Chinese car makers Chery Automobile Co. Ltd. and Zhejiang Geely Holding Group Co. Ltd. along with GeoCue Group Inc., Geodetics Inc., iCent, CrowdVision Ltd., LidarUSA and QuantumIT.

“The market for data-rich 3D perception enabled by LiDAR has reached an inflection point of growth and scale. In the last 12 months, a vibrant public LiDAR sector has been established,” Dr. Kevin J. Kennedy, Quanergy’s chairman and chief executive. “To democratize the LiDAR industry, providers need both semiconductor scale and software intelligence.”

Coming into its SPAC merger, Quanergy has raised $135.3 million in venture capital according to Crunchbase. Investors include Sensata Technologies, Reshape, Samsung Ventures, GP Capial, VPG Asia, Motus Ventures, Aptiv, Warderclyfee Partners and Wicklow Capital.

The net proceeds from the merger will be used to advance Quanergy’s growth strategy, including accelerating research and development, funding working capital, paying down all debt and establishing a pool for potential future acquisitions.

Image: Quanergy