Rotor Acquisition Corp. (NYSE:ROT) rose Tuesday after entering into a merger agreement with Sarcos Corp.
Upon closing, the combined company’s common stock is expected to trade on NASDAQ under the ticker symbol STRC. The transaction represents an enterprise value of $1.3 billion for the combined company, plus a potential earn-out of an additional $281 million based on the combined company’s future share trading price.
Sarcos Robotics prides itself on being “a leader in the development of robots that augment humans to enhance productivity and safety.”
The merger is expected to provide the company with up to $496 million of proceeds before expenses to fund business plans, facilitate potential bolt-on acquisitions, and enhance capabilities.
At the closing and as a result of the transaction, it is expected that the combined company will have up to $496 million in cash, prior to payment of transaction expenses, including approximately $276 million of cash held in Rotor’s trust account from its initial public offering (assuming no shareholder redemptions) and approximately $220 million from a committed PIPE investment, at $10.00 per share
Said Rotor Chairman Stefan M. Selig, “We launched Rotor Acquisition Corp. with the goal of identifying and partnering with companies that are leveraging technology and innovation to disrupt ‘old-economy’ businesses in large and growing markets. Sarcos fits these criteria perfectly, and we are excited to partner with them and create value by building out the Sarcos platform and bringing the Company’s robotics technology to the global workforce.”
ROT shares picked up 21 cents, or 2.2%, to $9.98.