LeddarTech, a Disruptive Automotive Software Provider, to Become a Public Company Via Business Combination With Prospector Capital Corp.
QUÉBEC CITY, June 13, 2023 (GLOBE NEWSWIRE)
- LeddarTech has the potential to disrupt the markets for Advanced Driver Assistance Systems (“ADAS”) and Autonomous Driving (“AD”) with patented low-level sensor fusion and perception software products.
- LeddarTech’s unique solution solves current limitations, enabling leading automotive original equipment manufacturers and Tier 1-2 suppliers to drive ADAS and AD to new levels of performance, safety and adoption.
- Current Capital served as a financial advisor that provided a fairness opinion to Prospector’s board of directors.
LeddarTech Inc. (“LeddarTech” or the “company”), an automotive software company that provides patented disruptive low-level sensor fusion and perception software technology for ADAS and AD, and Prospector Capital Corp. (“Prospector”) (Nasdaq: PRSR, PRSRU, PRSRW), a publicly traded special purpose acquisition company led by former Qualcomm President Derek Aberle and chaired by former Qualcomm Vice Chairman Steve Altman, announced their entry into a definitive business combination agreement that would result in LeddarTech becoming a publicly listed company. Upon closing of the transaction, which is expected by the fourth quarter of 2023, LeddarTech is expected to be listed on Nasdaq under the ticker symbol “LDTC.”
The transaction values LeddarTech at a pro-forma equity value of U.S. $348 million (assuming no redemptions and the full conversion of the convertible PIPE [without taking into account earn-out to LeddarTech existing shareholders or earn-out to Prospector’s sponsor]) and is expected to provide LeddarTech with up to U.S. $66 million in gross cash proceeds, which are expected to be used to fund the commercialization of its first embedded software solutions, expand its product offerings and deepen its customer engagements.
LeddarTech is a provider of industry-leading low-level sensor fusion and perception software for ADAS and AD. LeddarTech’s software solution is both sensor and processor-agnostic and significantly reduces the cost to OEMs and Tier 1-2 automotive suppliers while delivering improved performance and scalability for entry-level to premium ADAS/AD. ADAS and AD is the largest market within automotive software and is expected to grow at an 11% CAGR to U.S. $42 billion by 20301. The company has a strong early-mover advantage with over seven years of experience working on low-level sensor fusion and perception with 150 patents filed (80 granted) covering a broad array of foundational technologies such as signal acquisition, perception and fusion.
The transaction has been unanimously approved by the board of directors of Prospector, as well as the board of directors of LeddarTech, and is subject to the satisfaction of customary closing conditions, including the approval of LeddarTech’s and Prospector’s shareholders and the receipt of a final order of the Superior Court of Justice of Québec approving the transaction.
The combined entity will receive approximately U.S. $23 million from Prospector’s trust account, assuming no redemptions by Prospector’s public shareholders, as well as U.S. $43 million in gross proceeds from investors including Prospector’s sponsor, FS Investors (an affiliate of Prospector’s sponsor), Investissement Québec as a representative of the Government of Québec, Desjardins Capital and BDC Capital participating in the transaction via a convertible private placement investment into LeddarTech.
TD Cowen is serving as financial advisor to Prospector, and Current Capital is serving as a financial advisor that provided a fairness opinion to Prospector’s board of directors. Stikeman Elliot LLP and Vedder Price PC are representing LeddarTech as legal counsel. Osler, Hoskin and Harcourt LLP and White & Case LLP are representing Prospector as legal counsel. Goodwin Procter LLP is serving as legal advisor to TD Cowen.
About Current Capital Partners
Current Capital Partners LLC is an independent advisory and merchant banking firm focused primarily on the industrial and services sectors. We provide mergers and acquisitions advisory services, corporate management services, and private equity investing. The mergers and acquisitions advisory effort offers high-quality financial advisory services – including actionable ideas, buy-side and sell-side execution, strategic and capital structure reviews, restructuring advisory and related services – for corporate and investment firm clients seeking industry expertise, an independent perspective and senior attention. In our management services effort, we manage investments, provide restructuring advice, sit on Boards of Directors and provide related consulting services for other investors and financial institutions; and offer advice and expert witness services in complex corporate litigation. Our private equity investing business helps create value, primarily in lower middle market and smaller companies, with an integrated operating, finance and investment approach. Our Advisory Board and Executive Network are important advantages for our clients. Learn more at www.currentcap.com.
Jonathan F. Foster
Telephone: +1 212 223 0618