What’s Happening
In a significant development in the autonomous vehicle industry, Applied Intuition, Inc., a leading provider of software and tooling for autonomous vehicle development, has revealed its intention to acquire autonomous trucking software firm, Embark Technology, Inc. The companies have entered into a definitive merger agreement, which outlines an all-cash deal valued at approximately $71 million.
Why It Matters
This strategic merger matters as Embark Technology, since its inception in 2016, has been pivotal in developing an effective autonomous software stack, which incorporates machine learning techniques for perception and operates on a safety-redundant compute system. With over 1.5 million miles of autonomous operations conducted on highways under its belt, Embark has also established a custom-built hardware platform that is optimized for autonomy.
Key Points
In this merger, Applied Intuition plans to assimilate Embark’s software assets, internal tools, and data to enhance its offerings for customers in the trucking and automotive industries. Embark, on its part, is set to retire its fleet of test vehicles, while key members of the Embark team are projected to stay on, contributing to Applied’s product suite.
Both Qasar Younis, Co-Founder and CEO of Applied Intuition, and Alex Rodrigues, Co-Founder and CEO of Embark, expressed their enthusiasm about the merger and its potential benefits. Younis pointed out that the acquisition of Embark should enable Applied to augment their products and tackle complex customer challenges more effectively. Rodrigues, on the other hand, is looking forward to seeing how Applied Intuition will harness and further develop the technology that Embark has built.
Bottom Line
The terms of the merger, unanimously approved by the boards of directors of both companies, involve Embark shareholders receiving $2.88 per share in cash. This move follows Embark’s announcement on March 3, 2023, that it was exploring a range of potential strategic alternatives. The transaction is scheduled to conclude in Q3 2023, subject to the approval of Embark shareholders and other customary closing conditions. Once the merger is complete, Embark will cease trading on NASDAQ and become a privately held company. This merger represents a crucial step in consolidating Applied Intuition’s position in the autonomous vehicle industry and shaping the future of automated trucking.
