Luminar CEO Austin Russell. Photo credit: Seb Daly/Web Summit via Sportsfile, under Creative Commons license

Palo Alto-based lidar maker Luminar has reached a deal to go public via a merger with Gores Metropoulos, a special purpose acquisition company (SPAC) sponsored by investment firms The Gores Group and Metropoulos & Co. The merger will add $400 million to Luminar’s balance sheet plus an additional $170 million to be sought from investors. The merger is intended to give Luminar an initial market capitalization of $3.4 billion.

Luminar, currently with 350 employees, is looking to go public eight years after its founding. As a private company, Luminar has raised $250 million in known funding, with notable investors including the likes of automaker Volvo, Moore Capital, Canvas Ventures, and tech investor Peter Thiel. Currently, Luminar works with dozens of partners, including 7 of the top 10 global automotive Original Equipment Manufacturers. The company is looking to go public via a merger with a SPAC, a non-conventional way that’s, however, becoming increasingly adopted as of late. A handful of companies have recently opted to go public via this way, to name some, Canoo, the electric vehicle upstart; CuriosityStream, the video streaming service; Lordstown Motors, another electric car upstart; and Hims, a telehealth company.

Upon completion of the intended merger, Luminar’s CEO, Austin Russell, and CFO, Tom Fennimore, will retain their positions. Alec Gores, the chair of The Gores Group, will join Luminar’s board.

The additional $170 million Luminar will raise will come from investors including Alec Gores, GoPro founder Nick Woodman, Peter Thiel, automotive dealership giant Van Tuyl Companies, and investment firm Moore Strategic Ventures.