BY Fraser Tennant
In a $3.3bn deal that will make it a publicly traded company, self-driving truck technology start-up Plus is to merge with special purpose acquisition company (SPAC) Hennessy Capital Investment Corp. V (HCIC V).
Under the terms of the definitive agreement, Plus’s existing shareholders will convert 100 percent of their ownership stakes into the combined company and are expected to own approximately 80 percent of the post-combination company at close.
Furthermore, the merger is expected to deliver up to approximately $500m in gross proceeds at closing, including approximately $345m of cash held in HCIC V’s trust account from its initial public offering (IPO) in January 2021.
“This transaction enables us to continue growing our business globally, so that fleets and drivers can benefit from our revolutionary technology and usher in a new generation of innovation,” said David Liu, chief executive and co-founder of Plus. “At the same time, the transaction introduces a partner that shares our focus on sustainable technology and infrastructure, is aligned on our growth and value creation objectives, and recognises the challenges trucking companies face today.”
To meet these challenges, Plus plans to roll out its Supervised Level 4 PlusDrive solution in 2021 and accelerate the development of its Level 4 fully autonomous system by the end of 2024.
“We are excited to partner with Plus on their mission to make long-haul trucking safer, cheaper and better for the environment,” said Daniel J. Hennessy, chairman and chief executive of HCIC V. “We look forward to collaborating with experts in automotive safety, self-driving technology, artificial intelligence, robotics, cyber security and product development, as Plus transforms the global freight market with a safe self-driving trucking system.”
The merger has been unanimously approved by the boards of directors of both Plus and HCIC V and is expected to close in the third quarter of 2021, subject to the satisfaction of the necessary regulatory approvals and customary closing conditions, including approval by HCIC V’s shareholders.
Mr Liu concluded: ”We look forward to working closely with the HCIC V team as we move to commercial deployment and deliver value for drivers, customers and shareholders.”
News: Self-driving truck startup Plus to go public through $3.3 bln SPAC deal