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Planet Labs aims to expand its software offerings and acquire new customers with IPO funding

Satellite imagery company Planet Labs Inc. will acquire more customers, increase data provision and make more acquisitions after being unveiled in a merger with a special-purpose acquisition company early next month.

A San Francisco-based company that sells geospatial data and analytics software to companies and government agencies will spend about $ 600 million, which is expected to be raised from public offerings, said Ashley Johnson, chief financial officer. rice field.

Planet Labs will complete the merger with Las Vegas-based SPAC.

dMY Technology Group Inc. IV

Then, shortly after the shareholder vote on December 3, the new name Planet Labs Public Benefit Corp on the New York Stock Exchange. Debuted at. SPAC is a paper company that issues shares to raise funds to purchase and publish a business.

Ashley Johnson, Chief Financial Officer of Planet Labs


Photo:

Wealth Front Co., Ltd.

The $ 600 million equity raising includes private investment in public equity (PIPE) of $ 252 million from existing investors.

alphabet Of a corporation

Google, and new investors Salesforce.com Inc. Koch Strategic Platforms LLC, a subsidiary of Marc Benioff’s investment fund TIME Ventures and Koch Investments Group. Google, TIME Ventures, and Koch Strategic Platforms did not immediately respond to requests for comment.

Planet Labs said it has raised more than $ 450 million in venture capital funding and recently raised $ 168 million from Google and venture capital Threshold Ventures and DCVC Management Co in the 2018 Series D round. .. Most of these funds went to the construction of Planet. The company said the lab’s satellite group has launched 450 units since its establishment in 2010.

By publishing through SPAC, Johnson said, companies will have better access to capital and executives will be more engaged with investors than traditional IPOs. “Currently, we have the capital behind the expansion of our commercial infrastructure,” she said. Johnson joined Robo’s financial advisory firm Wealth Front Corporation last year and was CFO and Chief Operating Officer.

When released, Planet Labs will invest in marketing and expand its software offerings, according to Johnson. The company wants to enhance its ability to provide time-stamped data that companies and data analysts can incorporate into modeling and data mining systems. To help with this, the company agreed earlier this month to acquire VanderSat BV, a global data provider based in Harlem, the Netherlands, for about $ 28 million.

“In addition to our data, this type of analytics opens up more market opportunities for us and more wallet shares with existing customers,” Johnson said. The company said it has about 700 customers, but has not disclosed a goal to increase that number. Its business customers are concentrated in industries such as agriculture and cartography.

Planet Labs is one of several satellite companies that have decided to publish via SPAC in the last few months. Higher investor demand For space-derived data. Another such company is Terran Orbital Corp, based in Boca Raton, Florida. And Uruguay-based Satellitelogic.

The company, which sells subscriptions to its customers, expects to generate $ 191 million in revenue for the fiscal year ending January 2023. This is an increase of 69% from the revenue reported in the most recent fiscal year ending January 31st. According to Johnson, the company, which has more than 600 full-time employees, expects to make a quarterly profit by 2025.

The Canadian Pension Plan Investment Board, one of the world’s largest institutional investors, has invested in Planet Labs. This is partly because the company collects a wealth of image data and generates more revenue than some competitors. Fund.

In September, CPPIB, also known as CPP Investments, promised to provide $ 50 million in PIPE funding to Planet Labs, its first investment in the company. “The important thing is not just to get the data, but to make it a useful format for our customers,” Walsh said.

Write in Mark Maurer mark.maurer@wsj.com

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Planet Labs aims to expand its software offerings and acquire new customers with IPO funding

Source link Planet Labs aims to expand its software offerings and acquire new customers with IPO funding

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