Benzinga | Dec 22, 2020 12:12AM EST

SPAC Colonnade Shoots Up 40% On Report Of Merger Deal With Lidar Startup Ouster

Special purpose acquisition company (SPAC) Colonnade Acquisition Corp (NYSE:CLA) is valuing lidar technology startup Ouster Inc at $1.9 billion in a merger deal, Reuters reports.

What Happened Outster plans to go public through the merger deal that could be announced as soon as Tuesday.

The startup's lidar technology is used in self-driving vehicles for creating a 3D map of the environment. It is also said to have applications in designing smart cities, robotics, and drones.

As per Crunchbase, since its inception in 2015, Ouster has raised $132 million from 11 investors.

Colonnade in its initial public offering in August raised $200 million. In a filing with the U.S. Securities and Exchange Commission at the time, the company said -- while the management team possessed expertise in sectors like natural resources, energy, real estate, and agricultural industries -- it was open to a business combination in any business or industry.

The SPAC said it would target companies in the U.S., U.K., or Asia, with a current enterprise value between $600 million to $1 billion.

Why Does It Matter This year, Outster is the fifth company in the lidar technology business to opt for a merger with a blank check company, following Velodyne Lidar Inc (NASDAQ:VLDR), Luminar Technologies Inc (NASDAQ:LAZR), Innoviz Technologies Inc, and Aeva Inc.

The Lidar stocks gained momentum on Tuesday after a Reuters report said Apple Inc (NASDAQ:AAPL) plans to launch self-driving electric vehicles by 2024. Luminar was up 27.26% during regular trading hours. Velodyne gained 22.97% in the regular session and an additional 8.10% in the after-hours.

Price Action Colonnade stock rallied by 40.87% in the after-hours session Monday at $14.20, after a 0.3% uptick during the regular session.

Related News: Self-Driving Tech Startup Innoviz Talks SPAC Merger To Go Public: Report