News: Microelectronics
7 October 2021
Navitas and Live Oak II add $18m to PIPE, raising total proceeds to $173m
Regarding their proposed business combination (which values the combined entity at a pro forma equity value of $1.04bn), gallium nitride (GaN) power integrated circuit firm Navitas Semiconductor of El Segundo, CA, USA and Dublin, Ireland and its partner Live Oak Acquisition Corp II - a publicly traded special-purpose acquisition company (SPAC) - have added $18m to its ‘PIPE’ (private investment in public equity).
As a blank check company whose business purpose is to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses, Live Oak II has also entered into a forward purchase agreement for up to $30m with an affiliate of Atalaya Capital Management LP (a privately held, SEC-registered alternative investment advisory firm that focuses primarily on private credit and special opportunities investments).
When Navitas and Live Oak II agreed the business combination on 7 May, Live Oak II also entered into subscription agreements for an oversubscribed and upsized $145m private placement of Class A common stock in Live Oak II at $10 per share (the PIPE) from a diversified group of institutional investors. On 17 August, this was increased to $155m. Now that Live Oak II has entered into subscription agreements with new investors for the extra $18m of Class A common stock (on the same terms as the existing PIPE investors), the total has risen to $173m.
Founded in 2014, Navitas introduced what it claimed to be the first commercial GaN power integrated circuits. Its proprietary GaNFast power ICs monolithically integrate GaN power field-effect transistors (FETs) and GaN drive plus control and protection circuits in a single SMT package. Since GaN is reckoned to run up to 20x faster than silicon, GaNFast power ICs are said to deliver up to 3x faster charging or 3x more power in half the size and weight, and with up to 40% energy savings compared with silicon chips. GaN power ICs dominate flagship mobile fast chargers and are progressing into higher-power markets, such as data centers, solar energy and electric vehicles (EVs). With over 130 patents issued or pending, and significant trade secrets including a proprietary process design kit (PDK), Navitas believes it has a multi-year lead in next-generation GaN power ICs.
Since the original announcement of the business combination between Navitas and Live Oak II, the number of OEM chargers in mass production containing Navitas GaNFast power ICs has increased from 75 to more than 140 (more than all GaN competitors combined, Navitas estimates). The number of GaNFast power ICs shipped has also increased, from over 18 million to over 25 million (as of 1 August), with zero reported field failures.
In addition to previously disclosed tier-1 customers such as Dell, Amazon, LG Electronics, Xiaomi and Belkin, Navitas recently showcased testimonials from partners including Enphase Energy in the solar market, electric vehicle system supplier Brusa Elektronik AG, and data-center power firm Compuware.
Navitas and Live Oak II announce extra $10m PIPE investment, raising total expected to $155m
