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Google-backed Planet Labs to go public in $2.8 billion SPAC deal

By Reuters

– Earth data and analytics company Planet Labs Inc, which is backed by Alphabet Inc’s Google, will go public through a merger with a blank-check company in a deal valued at $2.8 billion, the companies said on Wednesday.

Planet Labs will merge with dMY Technology Group Inc IV and list on the New York Stock Exchange.

The company, which generates revenue mainly through a subscription-based model, said its services are used by over 600 customers in 65 countries. It generated over $100 million in revenue in the financial year ended Jan. 31.

Planet Labs will invest proceeds from the deal to speed up growth, including expansion into existing and new markets and offer new products, it said.

Participants in the $200 million PIPE (private investment in public equity) round included BlackRock, Koch Strategic Platforms, Google and Salesforce.com Chief Executive Officer March Benioff’s investment fund TIME Ventures.

Special purpose acquisition companies (SPACs) such as dMY raise money through their IPOs to buy a private companies and take them public, typically within two years of listing. DMY raised $345 million in its IPO in March.

Goldman Sachs & Co was Planet Labs’ financial adviser, while Morgan Stanley & Co and Needham & Co advised dMY IV on the deal, which is expected to be completed later this year.