Google-backed Planet Labs to Go Public in $2.8 bln SPAC Deal

Google-backed Planet Labs to Go Public in $2.8 bln SPAC Deal

This photo taken on August 23, 2018 shows the Google logo on display at the Smart China Expo at Chongqing International Expo Center in southwest China's Chongqing. (Photo by STR / AFP) / China OUT (Photo credit should read STR/AFP/Getty Images) | STR/AFP/Getty Images

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, according to Reuters.

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