El Dorado Hills-based technology company Blaize Inc. plans to go public through a merger with special purpose acquisition company BurTech Acquisition Corp. in a deal that would value Blaize at $894 million.
Under the terms of the deal, which was announced in a news release Friday, shareholders of Blaize would receive shares of BurTech (Nasdaq: BRKH) at price of $10 each in an amount that implies a valuation of $894 million for Blaize. Blaize would also receive about $71 million in cash, including up to $46 million held by BurTech and a $25 million investment from BurTech affiliate Burkhan Capital LLC.
BurTech, as a special purpose acquisition company, or "SPAC," is a shell company that raised $287.5 million through an offering of stock to the public in 2021. SPACs are shell companies that raise capital through IPOs that they use to acquire operating companies.
Blaize makes processor architecture and software platforms to enable artificial intelligence in products for diverse markets including the automotive industry, industrial automation and health care. The capital it will raise in its merger and that it could raise in the future as a publicly traded company could help position it for growth amid the boom in AI technology.
"This combination with BurTech is a landmark event for Blaize," CEO and co-founder Dinakar Munagala said in a statement. "It positions us perfectly to tackle the exciting challenges and global opportunities in AI computing and processors."
Blaize, which was founded in 2010, has previously raised $224 million in venture capital from strategic investors including Mercedes-Benz and Samsung, and financial investors including Franklin Templeton.
Blaize was co-founded by Munagala and Satyaki Koneru, who holds the title of chief technology officer. Before co-founding Blaize, Munagala worked in the graphics group for Intel Corp. at its research and development campus in Folsom. Koneru previously worked for Intel (Nasdaq: INTC) and for AI pioneer Nvidia Corp. (Nasdaq: NVDA).
BurTech, headquartered in New York, is led by CEO Shahal Khan, who is also CEO of private wealth management firm Burkhan World Investments. Khan may be best known for being part of an investor group that purchased the Plaza Hotel in New York in 2018 for $600 million.
The merger of Blaize and BurTech is expected to be completed in the second quarter of 2024, subject to approval of both companies' stockholders and other conditions.
