Lossmaking Indie Semi to go public in $1.4 billion deal

December 15, 2020 // By Peter Clarke
Lossmaking Indie Semi to go public in $1.4 billion deal
AyDeeKay LLC (Aliso Viejo, Calif.), which trades as Indie Semiconductor, has announced it is going public via a merger with Nasdaq-listed Thunder Bridge Acquisition II, Ltd.

The deal will value the combined entity at US$1.4 billion and provide Indie with up to US$495 million in cash before expenses. Thunder Bridge already holds US$345 in cash from its IPO.

Thunder Bridge Acquisition II Ltd., is a Cayman Islands company, that trades on Nasdaq and was formed in 2019 for the purpose of making mergers and acquisitions. It's CEO is financial executive Gary Simanson.

AyDeeKay made a loss of $17 million on sales of just $23 million in 2019, according to a presentation that accompanied the merger announcement. The company is predicting a similar loss and no increase in sales in 2020. The company is not expected to turn a profit until 2023 althoigh by then the company expects annual sales to have topped $200 million.

Indie was founded in 2007 as AyDeeKay LLC and has moved into automotive microcontrollers and other SoCs making particular use of multi-die packaging to produce components. Indie now describes itself as a leading provider of semiconductors and software for ADAS, connectivity, user interface and electric vehicle applications.

Indie claims it is on 12 automotive Tier 1's approved vendor lists and has what it calls a "backlog position" that could be worth US$2 billion. That is based on design wins it has already achieved, design wins it might expect to achieve, and predicted growth in the automotive semiconductor sector, the company said.

"Thunder Bridge II has found an outstanding merger partner in Indie Semiconductor,” said Gary Simanson, CEO of Thunder Bridge II, in a statement. "Donald McClymont and his team have established a leadership franchise with a differentiated product offering, having shipped over 100 million units to Tier 1 automotive suppliers globally."

Indie Semi sales ramp in units from 2011 to 2020. Source: Indie Semi.

Upon closing of the transaction, the combined operating entity will be named Indie Semiconductor, Inc. and will be listed on the Nasdaq Stock Market under the ticker symbol INDI.

The combined company will be led by Indie's management team which includes McClymont, co-founder and president Ichiro Aoki and co-founder and CTO Scott Kee, CFO and executive vice president of strategy Thomas Schiller.

Indie has invested heavily in engineering sites and has design centers in Aliso Viejo, California, Austin, Texas; Edinburgh, Scotland; and in Wuxi and Shanghai in China.

Related links and articles:

www.indiesemi.com

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