News: Microelectronics
10 May 2021
Navitas to go public via Live Oak II
Navitas Semiconductor Inc of El Segundo, CA, USA and Dublin, Ireland has entered into a definitive agreement to combine with Live Oak Acquisition Corp II (Live Oak II), a publicly traded special-purpose acquisition company (SPAC). The transaction, which values the combined entity at a pro forma equity value of $1.4bn, will result in Navitas becoming a publicly traded company on a national exchange under a new ticker symbol.
GaN is reckoned to run up to 20x faster than silicon, and enables up to 3x more power or 3x faster charging in half the size and weight. Founded in 2014, Navitas introduced what it claimed to be the first commercial GaN power ICs, which monolithically integrate GaN power field-effect transistors (FETs) with drive, control and protection circuits, enabling faster charging, higher power density and greater energy savings.
Driven by increasing demand for connectivity, electrification away from fossil fuels, and efficient sustainable energy sources, Navitas predicts that GaN ICs can address markets that are estimated to grow to over $13bn in 2026. Markets include mobile, consumer, enterprise (data center, 5G), renewables (solar, energy storage) and electric vehicles (EVs)/eMobility.
Navitas is in mass production and ramping shipments to many major OEMs and after-market suppliers, including Dell, Lenovo, LG, Xiaomi, OPPO, Amazon, Belkin and dozens of others. Over 18 million GaNFast power ICs have been shipped, with zero reported field failures.
With a proprietary process design kit (PDK) and over 120 patents granted or pending, Navitas reckons that it has an early-mover advantage in the GaN market. A robust roadmap for new GaN generations and continued cost reductions is helping to accelerate the transformation away from CO2-burdened fossil fuels. Navitas estimates that GaN can impact up to 2.6Gtons of CO2 reduction annually by 2050.
“Navitas was formed with the vision to revolutionize the world of power electronics while addressing significant sustainability challenges for our planet,” says Navitas’ co-founder & CEO Gene Sheridan. “Not only has Navitas’ world-class team invented and patented revolutionary new technology, but we have also overcome all the key hurdles associated with successfully bringing it to market. We are proud to enter the public capital markets with strong operating momentum and investor partners who share our enthusiasm for our long-term mission,” he adds.
“This is the most compelling opportunity we have seen in the semiconductor industry, and we are delighted that Navitas’ solutions contribute meaningfully to reduced carbon emissions through more efficient power delivery,” comments Live Oak’s CEO Rick Hendrix. “The capital raised through this transaction will allow Navitas to accelerate that vision as they expand from mobile and consumer markets into even more power-intensive applications like data centers, solar energy and electric vehicles – all while delivering a significant CO2 reduction as part of their Net Zero initiative.”
Navitas was originally funded by the company’s management team, along with venture capitalists with long-term track records, focused on disruptive businesses in the clean-tech and electronics industries. Capricorn Investment Group, Atlantic Bridge and seed investor Malibu IQ, along with all current investors, are rolling 100% of their equity in this transaction. “With a doubling of electrical energy demand driving the global energy transition, Navitas’ GaN power ICs are already having a powerful, positive energy-efficiency impact, benefiting all of us globally,” comments Malibu IQ founder David Moxam.
Overview of transaction
The transaction is expected to deliver up to $398m of gross proceeds to the combined company, assuming minimal redemptions by Live Oak II’s public stockholders. This includes an oversubscribed and upsized $145m private placement of Class A common stock in Live Oak II at $10 per share (the ‘PIPE’ private investment in public equity), from a diversified group of institutional investors.
Proceeds of the transaction will be used to fund Navitas’ future growth initiatives. Existing Navitas shareholders will roll 100% of their equity into the combined company. The transaction, which has been unanimously approved by the boards of Live Oak II and Navitas, is expected to close in third-quarter 2021, subject to approval by Navitas’ shareholders, which has been secured through support agreements, Live Oak II’s shareholders and other customary closing conditions, including any applicable regulatory approvals.
Navitas ships 13 millionth GaNFast Power ICs with zero failures
