SPAC deal moves self-driving technology closer to commercialization
Founded in 2017, the company is developing the Aurora Driver – an L4 autonomous driver system designed to power multiple vehicle types to move safely and efficiently through the world without a human driver. The company expects to launch first in trucking in late 2023, after which it expects to rapidly expand into adjacent verticals including last-mile delivery and ride-hailing.
“Our goal at Aurora is to make the movement of goods and people more equitable, productive, dependable, and—crucially—much safer than it is today,” says Chris Urmson, Co-Founder and Chief Executive Officer of Aurora. “By combining with Reinvent and with this incredible group of investors, we are even closer to deploying self-driving vehicles and delivering the benefits this technology offers the world.”
The company’s truck manufacturing partners, Volvo Group (which includes Volvo Autonomous Solutions) and PACCAR (which includes the Peterbilt and Kenworth brands) collectively represent approximately 50 percent of the Class 8 trucks sold in the U.S. market. As long-term committed partners, Volvo and PACCAR will help accelerate the development, validation, and deployment of self-driving trucks. Aurora is also expected to scale rapidly in passenger mobility with the support of Toyota, the world’s #1 OEM supplier, and Uber, the largest ride-hailing network globally by market-cap.
Investors and Aurora partners have committed $1 billion in a private investment in public equity (PIPE) and the proposed transaction represents an equity value of $11 billion for Aurora. Investors in the PIPE include Baillie Gifford, funds and accounts managed by Counterpoint Global (Morgan Stanley), funds and accounts advised by T. Rowe Price Associates, Inc., PRIMECAP Management Company, Reinvent Capital, XN, Fidelity Management and Research LLC, Canada Pension Plan Investment Board, Index Ventures, and Sequoia Capital, as well as strategic investments from Uber, PACCAR, and Volvo Group.
The pro forma implied market capitalization of the combined company is $13 billion, at the $10.00 per share PIPE subscription price. The combined company is expected to have approximately $2.5 billion in cash at closing.
Mark Pincus, Co-Founder and Director of Reinvent Technology Partners Y says, “We believe Aurora will be the first to commercialize self-driving technology at scale for the U.S. trucking and passenger transportation markets based on its industry-leading team, technology and partnerships.”
The proposed transaction is expected to close in the second half of 2021, subject to the usual approvals. Upon closing, the combined company will be named Aurora Innovation, Inc. and be publicly traded, with its common stock expected to be listed on Nasdaq with the ticker symbol AUR.
Related articles:
Self-driving tech startup acquires Uber’s ATG unit
Self-driving car startup gets backing from Amazon
Apple eyeing self-driving startup acquisition
Microsoft joins with GM, Cruise to commercialize self-driving cars
Gartner: Software progress drives autonomy of cars
If you enjoyed this article, you will like the following ones: don't miss them by subscribing to :
