Embark to Be Acquired by Applied Intuition
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Embark Technology is set to be acquired by fellow autonomous vehicle software company Applied Intuition, the companies announced May 25.
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The announcement puts the equity value at approximately $71 million.
Applied Intuition will provide an all-cash transaction as part of a definitive merger agreement signed between the two companies. Applied Intuition aims to integrate internal tools, data and software assets gained in the deal to further improve its offerings for customers in the trucking and automotive industries.
“Today marks an exciting, new chapter for Embark,” said Alex Rodrigues, CEO at Embark. “I would like to thank all past and present employees for their contributions over the past seven years. I appreciate everything they have done for the company, and I cannot wait to see where Applied takes the technology we have built.”
We have entered into a definitive agreement to acquire Embark!
We aim to integrate Embark’s internal tools, data, and software assets to better serve our customers.
Learn more: https://t.co/DApV3OSAQ8#adas #autonomousvehicles #acquisition pic.twitter.com/oTTwEmz6WZ — Applied Intuition (@AppliedInt) May 25, 2023
Embark is an autonomous trucking software company that was founded in 2016. The company has developed a hardware platform for autonomous trucks that has undergone real-world testing. Applied Intuition is a tooling and software provider for autonomous vehicle development. Key employees are expected to remain to support its operations and expand its suite of product offerings.
“We are excited to acquire Embark,” Applied Intuition CEO Qasar Younis said. “This acquisition should enable us to advance our products and solve more specific, complex challenges for our customers. We respect the work Embark has accomplished in the autonomous vehicle industry and look forward to leveraging their expertise to better serve our global customer base.”
The agreement has been approved unanimously by the boards of directors of both companies. Embark shareholders will receive $2.88 per share in cash. The transaction is expected to close in the third quarter and is subject to approval by shareholders and other customary closing conditions. Embark will become a privately held company upon completion of the transaction with its shares and warrants ceasing trading on Nasdaq.
Embark also plans to retire its fleet of test vehicles as part of the transaction. The agreement comes after its March 3 announcement that it was engaging in a process to explore, review and evaluate a range of potential strategic alternatives.
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