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Blaize is a provider of full-stack artificial intelligence (“AI”) solutions for automotive and edge computing in multiple large and rapidly growing markets.
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Blaize has previously raised $224 million from strategic investors that include DENSO, Mercedes Benz, Magna and Samsung, financial investors such as Franklin Templeton, GGV and Bess Ventures, and globally-renowned operators such as Dado Banatao, Jürgen Hambrecht, Dr. Paul Achleitner, Dr. Gerhard Roiss, and Kurt Lauk.
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The proposed transaction values Blaize at a pro forma enterprise value of $894 million.
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Expected to deliver minimum proceeds of $71 million, prior to payment of expenses, to the combined company to accelerate Blaize’s full-stack edge-AI product roadmap and support Blaize’s execution of significant business opportunities.
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Blaize has a strong customer pipeline across multiple industries, underwritten by several joint development agreements, including a long-term joint development agreement with a leading automotive Tier-1 supplier, and a multi-phase master services agreement with a leading German automotive original equipment manufacturer (“OEM”) to deliver AI acceleration.
El Dorado Hills, CA — (BUSINESS WIRE) — Blaize, Inc. (“Blaize”), a provider of purpose-built, AI-enabled edge computing solutions, announced today that it has entered into a definitive agreement to combine with BurTech Acquisition Corp. (“BurTech”) (NASDAQ: BRKH), a publicly traded special purpose acquisition company. Upon closing of the proposed transaction, Blaize will become a publicly traded company and is expected to be listed on Nasdaq under a new ticker symbol. The proposed transaction values Blaize at a pro forma enterprise value of $894 million.
Blaize Overview
Blaize is a provider of full-stack, AI-enabled computing solutions across diverse and expanding markets, encompassing automotive, mobility, retail, security, industrial automation, healthcare and others that represent a collective total addressable market in excess of $70 billion. Blaize’s proprietary, purpose-built, full-stack programable processor architecture and low-code/no-code software platform solutions are designed to enable enterprises to rapidly harness the power of AI at the periphery of the network and in the data center and deliver real-time insights and decision-making capabilities with speed and efficiency.
This efficient processor architecture is designed to address the inherent challenges of edge AI processing, providing high-performance computing at low power consumption, minimal latency and high efficiency. The Blaize architecture includes its software suite composed of Blaize® AI Studio® and Blaize® Picasso® SDK (Software Development Kit), providing customers with a user-friendly and flexible means to swiftly develop and deploy applications at a highly optimized total cost of ownership (“TCO”).
Management Comments
BurTech Quote: CEO and Chairman of BurTech Shahal Khan, commented, “Today marks the beginning of an extraordinary journey as BurTech agrees to combine with Blaize. The potential in the field of edge AI is immense, and this partnership positions the combined company for success. We are honored to have garnered strong backing from visionary investors, a testament to the revenue and growth potential in our journey. Our confidence in Blaize’s management team is unwavering, and together, we are poised to be a leading player in a bright and transformative future in the world of edge AI. We are eager to pioneer the path ahead.”
Blaize Quote: Commenting on this merger, CEO and co-founder of Blaize, Dinakar Munagala stated, “This combination with BurTech is a landmark event for Blaize. It positions us perfectly to tackle the exciting challenges and global opportunities in AI computing and processors. We are grateful for the support of our long-term investors and the commitment from BurTech. This enables us to rapidly deploy our proprietary AI solutions across multiple geographies and play a prominent role in shaping the future of sustainable AI innovation.”
Transaction Overview
Under the terms of the merger agreement, Blaize will merge with and into a wholly-owned Delaware subsidiary of BurTech that was formed for the purpose of the proposed transaction (the “Merger”), with Blaize surviving the Merger as a direct wholly owned subsidiary of BurTech. At the effective time of the Merger, stockholders of Blaize immediately prior to the effective time of the Merger will receive shares of BurTech common stock based on an implied pro forma enterprise value of approximately $894 million at a price of $10.00 per share.
The proposed transaction is expected to deliver minimum proceeds of approximately $71 million (prior to payment of expenses), including approximately $46 million cash from BurTech’s trust account (assuming no further redemptions by BurTech’s stockholders) and a $25 million committed investment from Burkhan Capital, LLC, an affiliate of BurTech, in the form of convertible notes and warrants of Blaize.
In addition, 16.3 million shares of common stock of BurTech may be issued as earnout shares after the closing of the proposed transaction, in accordance with the schedule set forth in the merger agreement. The earnout shares are to be issued to shareholders of Blaize and Burkhan Capital LLC contingent, in each case, on meeting certain stock price thresholds.
In connection with the consummation of the proposed transaction, BurTech will be renamed “Blaize Holdings, Inc.”
The proposed transaction, which has been unanimously approved by the board of directors of each of BurTech and Blaize, is expected to close in the second quarter of 2024, subject to approval by BurTech’s and Blaize’s stockholders and the satisfaction of other customary closing conditions, including the effectiveness of a registration statement on Form S-4 (the “Registration Statement”), which will contain a proxy statement/prospectus, and other regulatory approvals. Additional information about the proposed transaction, including a copy of the merger, will be filed by BurTech in a Current Report on Form 8-K with the SEC that will be available at www.sec.gov.
Advisors
Norton Rose Fulbright US LLP is acting as U. S. legal counsel to BurTech. Cohen and Company Capital Markets a division of J.V.B. Financial Group, LLC is acting as exclusive financial advisor, lead capital markets advisor and private placement agent to Blaize. Latham & Watkins LLP is acting as legal counsel to Blaize. Blueshirt Capital Advisors is also serving as an investor relations advisor to Blaize
About BurTech Acquisition Corp.
BurTech Acquisition Corp. (NASDAQ: BRKH) is a special purpose acquisition company dedicated to partnering with exceptional businesses and providing them with the resources and expertise to excel in the public market. With a focus on delivering long-term value to stockholders and supporting innovative companies, BurTech Acquisition Corp. is committed to creating success stories in technology industries. With steadfast stockholders, a robust financial footing, and an unyielding commitment to innovation, BurTech Acquisition Corp. is a visionary force in the technology world.
About Blaize
Blaize has developed a suite of purpose-built, full-stack programmable processor architecture, and low-code/no-code software platform that enables AI processing solutions for high performance computing in multiple large and rapidly growing markets. Its proprietary, purpose-built solutions are designed to enable enterprises to harness the power of AI at the periphery of the network and in the data center and deliver real-time insights and decision-making capabilities with speed and efficiency.
This union of breakthrough hardware and software technologies—each optimizing the other—are designed to deliver a complete end-to-end market-proven solution powered by:
- Blaize® Graph Streaming Processor (GSP®)—a fully programmable, next-generation AI accelerator processor designed for edge and data centers and to deliver efficient compute, reduced latency and bandwidth, and available in multiple form factors.
- Blaize® AI Studio®—an intuitive, low-code/no-code development environment that is intended to simplify the creation and deployment of AI models at the edge, empowering developers and data scientists to build and optimize AI applications efficiently, bringing AI-powered solutions to market quickly.
- Blaize® Picasso® SDK—a graph-native and open software environment that is designed to accelerate the entire AI application development cycle and build and optimize complete AI applications running on GSP silicon.
Blaize is dedicated to delivering a market-proven complete end-to-end solution that provides superior performance and TCO compared to graphics processing unit (GPU) and application-specific integrated circuit (ASIC) alternatives. Blaize has established a comprehensive partner ecosystem that delivers turn-key solutions based on and complementing its technologies, such as cloud service providers, independent software vendors, aggregators, industrial personal computer vendors and others. Blaize has raised $224 million from strategic investors such as DENSO, Mercedes Benz, Magna, and Samsung, financial investors such as Franklin Templeton, GGV and Bess Ventures, and globally-renowned operators such as Dado Banatao, Jürgen Hambrecht, Dr. Paul Achleitner, Dr. Gerhard Roiss, and Kurt Lauk. Headquartered in El Dorado Hills (CA), Blaize has more than 200 employees worldwide with teams in San Jose (CA), Cary (NC) and subsidiaries in Hyderabad (India) and Leeds and Kings Langley (UK).
