Indie Semiconductor is planning to go public via a merger with special purpose acquisition company (SPAC) Thunder Bridge (NASDAQ:THBR) and THBR stock is on the rise following the news.
Here’s what investors need to know about the SPAC merger between indie Semiconductor and Thunder Bridge.
- The merger will have the newly-combined company taking on the indie Semiconductor name.
- It will also result in THBR stock changing to the INDI stock ticker but still trading on the Nasdaq Exchange.
- This will also have the current management team of indie Semiconductor leading the combined company.
- The deal implies a value of $1.4 billion for the company once the SPAC merger is complete.
- It will also provide indie Semiconductor with $495 million in cash, before expenses, to make use of.
- This comes from $345 million in cash held by Thunder Bridge II and $150 million from a private investment in public equity (PIPE).
- The SPAC merger has unanimous support from both indie Semiconductor’s and Thunder Bridge’s Boards of Directors.
- The deal is set to close during the first quarter of 2021.
- Indie Semiconductor is a company focused on the automotive semiconductor and software industry.
- According to IHS, this has it targeting a $16 billion market, which is expected to increase to $38 billion by 2025.
- Its strategic backlog position is valued at more than $2 billion.
- That’s based on its “projected revenues based on existing contracts, design and pricing terms and historic production trends.”
THBR stock was up 4.9% as of Tuesday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.