Large data analysis company
has quietly become an aggressive investor in companies that go public with SPACs or special purpose acquisition companies.
SPAC is basically a management group that raises capital through a pre-public offering for a clear acquisition. The acquired company becomes a public company without the usual IPO process. Publicly owned companies through SPAC often raise additional capital through a structure called PIPE, which stands for “Private Investment in Public Equity”. Although most PIPE participants are institutional investors, they sometimes include strategic investors.
And this is where Palantir (ticker: PLTR) appears.
To date, Palantir has participated in at least eight SPAC-related PIPE transactions, investing more than $ 100 million, using the transactions as a way to gain business from emerging companies that can benefit from Palantir’s large data analytics program. In fact, Palantir provides equity for the company’s long-term commitment to use the software.
Shalan Sankar, Palantir’s Chief Operating Officer, says there is a historical perception that Palantir software is only suitable for very large companies and government agencies. “We do not think that is right,” he said. “With SPACs, we see a historic opportunity to invest in our clients.”
Sankir notes that in late March, Palantir invested 10% of the company’s $ 2.4 billion in cash. This figure suggests that Palantir’s total PIPE costs could reach $ 240 million. The SEC Palantir’s last 10-month record reveals a total of $ 132 million in PIPE investments divided into five trades. which includes a $ 20 million investment in an unspecified company.
Sanker says Palantir has focused its investments on emerging businesses that should benefit from Palantir software. The company has invested only about 10% of the deals it has seen, he says. It seems that the company is less focused on the financial income from these transactions than on building relationships with potential significant customers, it is an effective exercise for business development. During each announced transaction, Palantir enters into a software contract. Sanker says that in many cases the long-term value of contracts exceeds Palantir’s initial investment in PIPE.
Palantir has confirmed its participation in eight SPAC investments to date. Here is a summary of transactions.
So far, the largest investment is the $ 41 million stake in Lilium, a German-made air taxi maker, with 7-seater planes that can take off and land vertically. The company combines:
(QELL), SPAC, created by the former CEO of General Motors. Lilium has signed a five-year contract with Palantir. Other investors in the $ 450 million PIPE deal include Bailey Gifford.
(TCEHY), PIMCO և et al.
Palantir is investing $ 21 million in Sarcos Robotics, which manufactures industrial robots. Sarcos merges
Acquisition of rotors
(ROT): The combination includes a $ 220 million PIPE deal with an investment group that also includes BlackRock, Caterpillar Venture Capital,
(SLB) և et al. Palantir has won a six-year software contract from Sarcos.
Celularity, a company that develops drugs from human placenta, with which it must merge, has a pending deal
GX Acquisition Corp.
(GXGX): In May, the company announced a “multi-year strategic partnership” with Palantir, which includes investing immediately upon completion of the merger. Palantir has invested $ 20 million in the deal, while Ceularity has agreed to a five-year deal with the company.
Roivant Sciences is a growing collection of pharmaceutical companies that have agreed to merge
Montes Archimedes Acquisition Corp.
(MAAC): Investors in the $ 200 million PIPE deal include SoftBank (SFTBY), Fidelity and Sumitomo Dainippon Pharma, among others. Palantir is investing $ 30 million in Roivant, which has also signed a five-year software contract.
Babylon Health, which provides application-based health services, has agreed to merge with Alcuri
Global Acquisition Corp.
(KURI): Palantir has invested in a $ 230 million PIPE deal with Montreal-based Sectoral Asset Management and Stockbank-based Swedbank Robur. (Palantir uses the service of Babylon for his employees living in Great Britain).
Pear Therapeutics, which provides prescription-based digital therapies, merges
Acquisition of Thimble Point
(THMA): The $ 125 million PIPE deal includes Palantir’s associates
(NVS), among others.
Boxed.com is a large-scale online retailer of Costco-style consumer goods. The company comes out to the public through a merger
Seven Oaks Acquisition Corp.
(SVOK): Other investors include Brigade Capital Management, Avanda Investment Management and Onex Credit.
Wejo, which provides connected vehicle information services, is merging
Virtuoso Acquisition Corp:.
(VOCO): Palantir և:
(GM) has invested in the company’s $ 100 PIPE offer.
Shares of Palantir fell 1% to $ 24.48 on Friday afternoon.
Write Eric Sav. Savitsin at firstname.lastname@example.org