FRANKFURT – Germany's Schmid Group plans to list in New York via a special purpose acquisition company (SPAC) in a deal estimated to give the technology firm a valuation of $640 million.

The fifth generation family-owned business, which specializes in electronics, would become a publicly-listed company on the New York Stock Exchange in the fourth quarter of this year.

The transaction will be through blank-check company Pegasus Digital Mobility Acquisition Corp (PGSS.N) led by automotive veteran Ralf Speth, the company said in a statement.

"We have been considering this step for some time and see the NYSE and the U.S. capital markets as much more suitable for a technology company," CEO Christian Schmid told Reuters.

Founded as an iron foundry in 1864 and headquartered in Freudenstadt in Germany's Black Forest, Schmid has more than 800 employees and develops equipment and manufacturing processes for printed circuit boards, as well as technology for industries including renewable power and energy storage.

The Schmid family will maintain majority ownership and management positions following the potential merger.