Bright Machines to Merge With SCVX in a $1.1 Billion SPAC Deal

Bright Machines is merging with SCVX (NYSE: SCVX), a special purpose acquisition company (SPAC), in a $1.1 billion deal.

Bright Machines developed a platform that utilizes artificial intelligence and robotics to automate manufacturing tasks.

The San Francisco, California-based manufacturing startup claims its so-called “microfactories” are able to perform electronics-manufacturing tasks and improve their efficacy rate as they repeat the process. Bright Machines said its product helps improve the efficiency of supply chains, minimizing the need for large numbers of human workers and significantly saving resources.

“Our industrial automation platform, powered by proprietary software and AI-driven solutions, allows even the most traditional manufacturing companies to quickly and easily deploy flexible automation solutions at scale. We believe that our technology represents a big leap in the transformation of manufacturing, as companies adapt to growing consumer demand, intensifying competition and the refactoring of global supply chains to improve resiliency and sustainability,” said Amar Hanspal, CEO and Co-Founder of Bright Machines.

At the moment, the company has around 25 clients and its existing investors include BMW iVentures, the German carmaker’s VC arm, and Lux Capital.

The deal would provide the company with around $435 million in cash proceeds, $230 million from the SPAC, and $205 million from the private investment in public equity (PIPE). Investing giants SoftBank Group Corp. and Fidelity Investments are also expected to take part in the PIPE.

If the merger is completed, Bright Machines would become the latest startup looking to modernize manufacturing with technology to go public by merging with a blank-check company. Multiple 3D-printing companies such as Velo3D and Desktop Metal have completed similar deals recently.

Mike Doniger, CEO and Chairman of the Board of SCVX, said, “Bright Machines’ innovative, industrial automation technology provides a crucial pathway for manufacturers to upgrade and secure their factories for the realities of the 21st century. Geopolitical tensions and the increasing threat of cyberattacks on manufacturing facilities are making it even more important for companies to minimize their supply chain risks and prepare for a world of distributed manufacturing. The momentum we have seen from Bright Machines in the nascent but critical space of software-defined manufacturing proves the strength of their solution and strategy.

Shares of companies that debuted via SPAC deals have plunged recently due to fears about stricter regulations and frothy valuations.

The SPAC involved in this deal, SCVX Corp., secured $230 million from investors in January last year. The company is led by CEO Michael Doniger, a former portfolio manager at Citadel.

Upon completion of the merger, Bright Machines intends to trade under the ticker symbol “BRTM”.

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