(Reuters) - Sarcos Robotics Inc said on Tuesday it will go public through a merger with a blank-check firm backed by former Credit Suisse (SIX:CSGN) 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 (NYSE:BLK), 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 (NASDAQ:MSFT) and the venture capital arm of General Electric (NYSE:GE), 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 (NYSE:JEF) and PJT Partners (NYSE:PJT) are acting as financial advisers to Sarcos, and Credit Suisse to Rotor.