Palihapitiya Part Of $2.7B SPAC Deal To Purchase Berkshire Grey


20-Year Pro Trader Reveals His "MoneyLine"

Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.


A pure-play robotics company proving automation solutions is hitting the public markets with a SPAC deal announced Wednesday morning.

The SPAC Deal: Berkshire Grey, which uses artificial intelligence for robotics and automation solutions, announced a SPAC merger with Revolution Acceleration Acquisition Corp (NASDAQ:RAAC).

The deal values Berkshire Grey at a post-transaction equity value of $2.7 billion. Berkshire Gray will receive $413 million in cash proceeds from the deal and have no debt after closing.

A $165 million PIPE was anchored by Chamath Palihapitiya and BlackRock.

Current Revolution Acceleration Acquisition shareholders will own 10% of the company if the merger is approved.

About Berkshire Grey: Berkshire Grey automates warehouses and logistics fulfillment centers. The company was founded by Tom Wagner, the former chief technology officer of iRobot Corp (NASDAQ:IRBT).

Berkshire Grey said in its investor presentation that only 5% of warehouses are automated, which could provide a substantial opportunity for the company going forward. An Amazon.com Inc. (NASDAQ:AMZN) effect of automation driving warehouses and logistics is causing other retailers to adapt.

Anchor customers listed in the investor presentation are Walmart Inc (NYSE:WMT), Target Corporation (NYSE:TGT), FedEx Corporation (NYSE:FDX) and TJX Companies Inc (NYSE:TJX).

Related Link: 10 SPACs Trading Under $11 For Investors To Consider In 2021

Growth Ahead: Berkshire Grey plans on deepening its relationships in key sectors and building out new value added services for its growth ahead, including its recurring revenue platform called robotics as a service.

Geographic expansion was listed in the investor presentation as another area of growth.

Five focus verticals for the company are retail, ecommerce, grocery, parcels and third-party logistics.

Financials: Berkshire Grey has a pipeline of $1.7 billion in deals. This has grown significantly from a reported $100 million at the start of 2020. The company’s order backlog and ongoing negotiations include several multinational retailers and ecommerce companies.

Backlog represents 85% of fiscal 2021 and 40% of fiscal 2022 revenue projections.

The company is guiding for revenue of $59 million in fiscal 2021, $119 million in fiscal 2022 and $248 million in fiscal 2023. Revenue is expected to hit $927 million in fiscal 2025.

Price Action: Shares of Revolution Acceleration Acquisition are up 17% to $12.77. 

Disclosure: The author is long shares RAAC

(Photo: Berkshire Grey)


20-Year Pro Trader Reveals His "MoneyLine"

Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.


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Posted In: M&AMoversTrading Ideasartificial intelligenceChamath PalihapitiyaRoboticsSPACSPACs