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

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 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 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 Inc. AMZN effect of automation driving warehouses and logistics is causing other retailers to adapt.

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

Posted In: artificial intelligenceChamath PalihapitiyaRoboticsSPACSPACsM&AMoversTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.