Israeli Chipmaker Valens In PTK SPAC Merger Talks

(Bloomberg) -- Israeli chipmaker Valens Semiconductor Ltd. is in talks to go public through PTK Acquisition Corp., a blank-check firm, according to people with knowledge of the matter.

The special purpose acquisition company is seeking to raise $100 million or more in new equity to support a transaction that’s set to value the combined entity at between $1 billion and $1.2 billion, one of the people said.

Terms of the deal aren’t finalized and it’s possible talks could collapse. A representative from Valens declined to comment. A representative for PTK Acquisition couldn’t be immediately reached for comment.

Hod Hasharon, Israel-based Valens, led by Chief Executive Officer Gideon Ben-Zvi, is projected to deliver revenue of more than $60 million in fiscal 2021, one of the people with knowledge of the matter said. The company, which makes semiconductor technology that can be used in automobiles as well as in standalone audio-video applications, counts Goldman Sachs Group Inc., Linse Capital, Oppenheimer Asset Management and Samsung Electronics Co.’s Catalyst Fund among its investors.

PTK, led by CEO Peter Kuo, a co-founder of private equity firm Canyon Bridge and a former Lazard Ltd. banker, raised $115 million in a July initial public offering.

Indie Semiconductor, another chip company specializing in the automotive industry, in December agreed to go public through a SPAC merger.

Israel’s Calcalist this week reported Valens is in talks to go public via a U.S. SPAC, without naming the vehicle.

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