Sarcos Robotics to Go Public With $1.3 Billion SPAC Deal, Backed by Palantir, BlackRock, and Caterpillar

By Adriaan Brits Tuesday, April 6, 2021

Sarcos Robotics announced plans today to go public through a reverse merger with SPAC (special acquisition purpose company) Rotor Acquisition Corp.

Robotic arms in a factory.

Hundreds of Millions Raised via SPAC Merger

The combined company will reach a business valuation of $1.3 billion including debt, the robotics business said in a statement today. Based on the company’s stock performance after the SPAC merger, the business is expected to receive an additional earnout of $281 million.

In an effort to finance the deal, the companies have secured roughly $220 million in private investment in public equity (PIPE). Business investors that backed the companies include BlackRock, Millennium Management, Palantir Technologies, Caterpillar Venture Capital, Schlumberger, as well as the executives of the company itself.

Sarcos Robotics is a Salt Lake City-based robotics company that makes robotic systems for non-repetitive tasks meant to boost productivity among industrial and military workers. Wearable devices, the so-called “exoskeleton,” can be leased for $100,000 a year.

The robotics business makes wearable robotic devices with mechanical limbs used to move heavy objects, reducing the number of injuries at work and allowing staff with less physical capabilities to move airport baggage and manufacturing components without aid.

This SPAC merger will inject $495 million in Sarcos, led by CEO Ben Wolff, who also co-founded telecommunications business Clearwire Corp.

“Our value proposition is to deliver the productivity of three, four, or five workers, depending on the use cases, industry and the job, etc.,” said Wolff in the press release.

Sarcos spent hundreds of thousands of dollars to make the first devices, he added. At the moment, the only Sarcos product available for sale is its inspection and surveillance robot, which is expected to represent a smaller part of its business revenues once the company launches its main products.

The SPAC business that will merge with Sarcos, Rotor Acquisition Corp, raised $276 million in its initial public offering (IPO) in January. The company’s chief executive is former Credit Suisse executive Brian Finn while the chairman of the business is Stefan Selig, who was an executive at Bank of America and a US Commerce Department official under the Obama administration.

The robotics business will receive the $280 million boost once the combined company’s share price hits $15 and $20. A new company, which is expected to trade on the Nasdaq stock exchange under the ticker symbol “STRC,” will be named “Sarcos Technologies and Robotics Corporation.”

“We did that so everybody is incentivized and aligned to do what we are hoping and expecting to happen here, which is to create significant long-term value,” said Selig.

Sarcos Robotics raised $40 million in a Series C financing round in September last year, led by Rotor Capital. At the time, the robotics business said it will use the proceeds to begin commercial production of its “Guardian XO” industrial exoskeleton.

Summary

Robotics company Sarcos Robotics said it will go public through a reverse merger with a SPAC vehicle Rotor Acquisition Corp. The combined company is expected to reach a business valuation of $1.3 billion.

About the Author


Headshot for author Adriaan Brits
As an analyst of global affairs, Adriaan has an MSC from Oxford, with diverse interests in the digital economy, entertainment, and business. He is a specialist trainer in Advanced Analytics & Media.

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