Lidar-sensor startup Ouster will go public through a merger with special purpose acquisition company Colonnade Acquisition CLA.
Colonnade shares at last check jumped nearly 39% at near $14.
If the deal closes, the new company will trade on the New York Stock Exchange under the ticker symbol OUST.
“Ouster is powering the vision for an autonomous future where lidar-powered solutions are ubiquitous and built into every part of the industrial economy,” said Ouster Chief Executive Angus Pacala in a statement.
The combination with Colonnade “will enable us to further accelerate the adoption of our proven technology across multiple end markets and realize a safer, smarter, more efficient future.”
Ouster expects the transaction to provide up to $300 million in gross proceeds consisting of $200 million from Colonnade’s cash on hand and $100 million in committed private investment in common stock at $10 a share.
The company expects to use that $200 million to develop and produce Ouster’s high-performance digital lidar sensors to speed its adoption and scale across end markets.
Lidar sensors give advanced 3D vision to robots, vehicles and other assets, enabling autonomous driving. Ouster says it provides what it believes to be the highest performing, lowest cost lidar solution on the market.
Ouster digital solution “[can disrupt] the existing analog solutions in the market,” Colonnade Chief Executive Remy Trafelet said.
“Ouster is well-positioned for significant growth opportunities given its proven business model, flexible suite of products, and rapidly expanding target markets.”
Special purpose acquisition companies – known as SPACs or blank-check companies – are formed to search out and merge with operating companies. They are a popular vehicle to take companies public without requiring the full process of listing on a major exchange.