Innoviz Technologies Ltd. is in talks to go public through a merger with Collective Growth Corporation (NasdaqCM:CGRO), according to people with knowledge of the matter. Collective Growth surged as much as 21%. Collective Growth is seeking to raise $100 million to $350 million in new equity to support a transaction that's set to value the combined entity at $1 billion or more, said the people, who requested anonymity because the discussions aren't public.

Terms could change as a deal isn't finalized, and it's possible talks could fall apart, one of the people said. A Collective Growth representative declined to comment and an Innoviz representative didn't immediately respond to a request for comment. Collective Growth rose as high as $12 in after-hours New York trading after closing at $9.89.