Palantir’s latest investment was announced on Thursday, when Babylon Health said it’s going public through a special purpose acquisition company. A group of investors, including Palantir, committed to invest a combined $230 million into the Babylon transaction.
Palantir has now agreed to at least six SPAC deals in less than three months. A SPAC is a blank-check company that raises money to buy a private entity through a reverse merger and take it public with the help of financing from additional investors. By participating in the PIPE, or private investment in public equity, Palantir is guaranteed ownership of a certain amount of stock once the transaction closes and the shares in the operating company start trading.
Beyond the financial returns, Palantir is looking for innovative companies in big markets that can make use of its data tools.
Palantir has backed companies ranging from drug discovery to robotics and air transport. Last week, it teamed with General Motors in a $100 million investment in Wejo, a U.K.-based developer of connected vehicle data systems. In March, it agreed to invest $41 million in Lilium, an air taxi company that’s developing a seven-seat, electric vertical takeoff and landing aircraft.
