Revolution Acceleration (NASDAQ:RAAC) stock is on the rise on the rise Wednesday following news that the special purpose acquisition company (SPAC) plans to merge with Berkshire Grey.

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Here’s everything investors need to know about RAAC stock and the upcoming SPAC merger.

• Revolution Acceleration is a blank-check company created with the purpose of taking a private company public via merger.
• It’s run by CEO John Delaney, who will join the Board of Directors at the combined company once the merger is complete.
• Berkshire Grey is an artificial intelligence (AI) and robotics solutions company.
• Its focus is on offering robots to retailers that can be used to handle various work tasks.
• That includes the ability to sort and pick out items in warehouses and logistics fulfillment centers.
• The company argues that this allows e-commerce companies to continue to offer low prices by reducing their costs of labor.

• It says that customers typically save enough money over the course of two to three years to justify purchasing the robots.
• Berkshire Grey is expected to come out of the SPAC merger with $413 million in proceeds.
• That includes $165 million raised from private investment in public equity (PIPE).
• When the deal closes, this will leave Berkshire Grey with a total of $507 million in cash.
• This will allow it to continue further operations and won’t result in it having any debt on its balance sheets.
• The deal is set to close in the second quarter of 2021.

RAAC stock was up 14.4% as of noon Wednesday.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.