Former Credit Suisse exec backed SPAC to take robotics firm Sarcos public

[April 06, 2021]  (Reuters) - Sarcos Robotics Inc said on Tuesday it will go public through a merger with a blank-check firm backed by former Credit Suisse USA chief Brian Finn, in a deal valuing the combined company at $1.3 billion.

The deal with Rotor Acquisition Corp is expected to fetch Sarcos with about $496 million in proceeds, including a private investment of $220 million from BlackRock Inc, Millennium Management, Palantir Technologies Inc and Rotor CEO Ben Wolff, among others.

Utah-based Sarcos is a developer of wearable robotics equipment designed to help public and private sector workers lift heavy items and reduce injuries at the workplace.

Its investors include Microsoft Corp and the venture capital arm of General Electric, among others. The transaction is expected to close in the third quarter of 2021.

Earlier this year, SoftBank-backed robotics firm Berkshire Grey also said it would go public through a blank-check firm merger, which valued the combined company at $2.7 billion.

Rotor, a special purpose acquisition company (SPAC), raised $276 million through an initial public offering in January.

SPACs are shell companies which raise funds to take a private company public through a merger at a later date, allowing such companies to eschew the hassles and scrutiny associated with a traditional IPO.

The combined entity will trade on the Nasdaq after the merger under the new ticker symbol "STRC", Sarcos said.

Jefferies and PJT Partners are acting as financial advisers to Sarcos, and Credit Suisse to Rotor.

(Reporting by Sohini Podder in Bengaluru; Editing by Shinjini Ganguli)

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