(Reuters) - Lidar makers Ouster Inc and Velodyne Lidar Inc said connected Monday they would merge successful an all-stock deal, forming a institution with a combined marketplace capitalization of astir $400 million.
Velodyne stockholders volition person 0.8204 shares of Ouster for each stock held, representing a 7.8% premium to Velodyne’s closing terms connected Friday.
Lidar sensors are progressively being utilized successful vehicles for blase situation mapping required for autonomous driving capabilities and safety, with request for the exertion expected to emergence sharply.
The operation volition let Ouster and Velodyne to consolidate their marketplace presumption and merchandise portfolios done cost-savings successful engineering, manufacturing and administration.
Velodyne shares were up 5.6% portion Ouster roseate astir 1% successful premarket trading.
The 2 companies had a combined currency equilibrium of astir $355 cardinal arsenic of Sept. 30, and purpose to recognize annualized outgo savings of astatine slightest $75 cardinal wrong 9 months of closing the projected merger, they said successful a statement.
The combined institution volition beryllium led by Ouster Chief Executive Officer (CEO) Angus Pacala, who volition service arsenic its CEO, and Velodyne apical brag Ted Tewksbury, who volition go enforcement chairman.
Existing Velodyne and Ouster shareholders volition ain astir 50% each of the combined company.
Barclays and Latham & Watkins served arsenic advisers to Ouster, portion BofA Securities and Skadden, Arps, Slate, Meagher & Flom LLP advised Velodyne.
Reporting by Yuvraj Malik successful Bengaluru; Editing by Vinay Dwivedi