Sept 6 (Reuters) - Materials science technology company Footprint took a near 38% cut to its valuation as part of an amended merger deal with a blank-check firm backed by billionaire Alec Gores, the companies said on Tuesday.

Gilbert, Arizona-based Footprint is now valued at $1 billion, down from $1.6 billion in December when the deal with special purpose acquisition company (SPAC) Gores Holdings VIII Inc was announced.

Several companies have scrapped mergers with SPACs in recent months, with markets battered by inflation and fears of aggressive rate hikes by the U.S. Federal Reserve.

Institutional investors have stepped up their support for the deal, with Koch Strategic Platforms agreeing to upsize its investment in the merger, the companies said, without offering more details.

Footprint will now get nearly $960 million from the deal compared with $805 million under the previous terms.

The company, which aims to eliminate single-use and short-term use plastics, said it had seen record revenue in the first half of 2022 and is on track to meet its year-end revenue target of $924 million.

(Reporting by Niket Nishant in Bengaluru; Editing by Vinay Dwivedi)