Reinvent Technology Partners (NYSE: RTP) announced a merger with Joby Aviation on Wednesday morning, allowing them to list on the NYSE.
Joby Aviation, a transportation company developing all-electric takeoff and landing aircraft, entered into a business combination agreement with Reinvent Technology, a Special Purpose Acquisition Company (SPAC).
The combined companies' market capitalisation is $6.6 billion, with the firm receiving up to $690 million in proceeds from Reinvents cash in trust and an $835 million private placement of common stock at $10.00 per share value. They will also convert a $75 million convertible note into common stock at a $10.00 per share value.
Existing Joby shareholders agreed to roll 100% of their equity over to the new company.
The board of directors for both firms approved the transaction, which is expected to close at the end of the second quarter of 2021.
Once the transaction is closed, the combined company will be named Joby Aviation and publicly traded on the New York Stock Exchange.
“Reinvent invests in world-class founders and teams who are developing industry-leading products and services that have the potential to impact millions of lives”, said Co-Founder of Reinvent, Reid Hoffman. “In Joby, we see a remarkable founder-led team that has quietly delivered the most advanced technology we've seen in this sector.”
Joby Aviation's future plans involve launching commercial operations in the United States in 2024 and they recently finalised an agreement with Uber Technologies to integrate their respective services into each other’s apps.
Reinvent Technology has seen its share price rise 23.75% to $17.08 premarket.