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Navitas Semiconductor lists on the NASDAQ via a SPAC with $1.7bn valuation

Company is now working to address energy challenges including saving billions in data centre electricity costs for operators.

By João Marques Lima

Founder and Editor, The Tech Capital

4 Mins

October 27, 2021 | 3:15 PM BST

Navitas Semiconductor lists on the NASDAQ via a SPAC with $1.7bn valuation

Navitas co-founders Gene Sheridan and Dan Kinzer. Source: Navitas Semiconductor

Navitas Semiconductor Corp. (NASDAQ: NVTS) has debuted on the Nasdaq Global Market in New York after merging with special purpose acquisition company (SPAC) Live Oak Acquisition Corp. II, a blank check company.

The debut in the stock markets ended with an enterprise value of US$1.7 billion, above analysts’ expectations, and over $320 million of gross capital raise.

Founded in August 2014 and headquartered in El Segundo, CA, Navitas is a developer of gallium nitride (GaN) semiconductors.

GaN is a next-generation semiconductor technology that runs up to 20x faster than legacy silicon, and enables up to 3x more power and 3x faster charging in half the size and weight.

Navitas’ GaN power ICs integrate GaN power with drive, control and protection to enable charging, power density, and energy savings for mobile, consumer, enterprise, eMobility and new energy markets.

In its latest financial results, Navitas posted no profit with revenues reaching $27 million. The company expects revenues to grow to $69 million in 2022 with Chief executive and co-founder Gene Sheridan saying the business “expects to be profitable in 2023”.

The IPO valuation, which comes in the midst of a long-lasting chip crisis, and the company’s results showcase the growth expectations for gallium nitride chips and Navitas.

Sheridan said: “It’s an exciting day, and a great chance to congratulate the whole next-gen power eco-system, from talented IC designers plus dedicated sales and applications teams, to partner customers and allied investors.

“The first seven years have seen extreme growth in Navitas IP, revenues, customers… and we’re looking forward to the next seven years, as we look to accelerate the transition to EVs, save billions in data centre electricity costs and lower CO2 emissions by up to 2.6 Gtons/year by 2050. Let’s Go GaNFast!”

Navitas completed its business combination with Live Oak Acquisition Corp. II days before its public market debut.

Rick Hendrix, formerly Live Oak II’s CEO and now board member at Navitas, said: “This is a deep-tech business, and the Navitas team comprehensively and confidently educated investors on the next-gen technology, the diverse markets and the detailed business model that makes GaN power ICs a great long-term story.”

Deutsche Bank Securities and Jefferies served as co-financial advisors to Navitas during the IPO process. Jefferies and BofA Securities acted as placement agents on the PIPE and capital markets advisors to Live Oak II. Nomura Greentech and BofA Securities served as financial advisors to Live Oak II.

DLA Piper LLP served as legal counsel to Navitas. Vinson & Elkins LLP served as legal counsel to Live Oak II. Winston & Strawn LLP served as legal counsel to the placement agents on the PIPE. Blueshirt Capital Markets LLC served as an advisor to Navitas. Navitas will report third quarter 2021 financial results after the market close on Tuesday, November 9, 2021.

Navitas will report third quarter 2021 financial results after the market close on Tuesday, November 9, 2021.

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Founder and Editor, The Tech Capital

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