Arbe Robotics Ltd. has announced that it will complete its business combination with Industrial Tech Acquisitions, a publicly traded special-purpose acquisition company or SPAC.
The Israel-based company has developed 4D imaging radar chipsets for driver-assist systems and self-driving vehicles. It expects to begin trading its ordinary shares and warrants on Nasdaq tomorrow under the ticker symbols “ARBE” and “ARBEW,” respectively.
“Becoming a publicly traded company extends our first-mover advantage and market-leading position as we continue to spearhead a radar revolution,” stated Kobi Marenko, CEO of Arbe. “We continue to see strong customer uptake in our chipset as they recognize the superior capabilities of our products and significant cost advantages, and we expect that momentum to carry forward in the years ahead.”
“The completion of the merger will help us accomplish our mission by enhancing our capital structure to fuel our product innovation process and accelerate our go-to-market strategy,” he said.
“I am excited to complete this deal and look forward to working with the entire Arbe team as they continue to pave the way to full autonomous driving,” said Scott Crist, chairman and CEO of ITAC. “Arbe’s game-changing technology is a significant competitive advantage in the automotive, industrial, and new mobility markets, setting the stage for long-term growth.”
As a result of the business combination, Arbe will receive approximately $118 million in gross proceeds including about $18 million in cash following ITAC’s public stockholders of their stock redemptions and $100 million from a private placement of Arbe’s ordinary shares. That includes investments from M&G Investment Management, Varana Capital, iAngels, Texas Ventures, and Eyal Waldman, among others.
Crist will join Arbe’s board of directors upon consummation of the business combination. In April 2021, China-based AutoX chose Arbe to supply radar for its Level 4 robotaxis.
The growing automotive radar market could have an estimated total addressable market of more than $11 billion in 2025, noted Arbe. The company said its 4D Imaging Radar Technology is an affordable, ultra-high-resolution sensor that delivers high-level performance in all environmental, weather, and lighting conditions.
Arbe claimed that its system “is the first radar that can truly enrich perception algorithms, making sure they operate in all possible driving scenarios.” The company said it provides capabilities that were previously associated with more costly sensors like lidar.