Lidar companies Ouster Inc and Velodyne Lidar Inc have agreed an all-share merger that steps up consolidation in search of profitability in autonomous vehicle technology.
Ouster shares have lost 77 per cent of their value since Jan. 1 and Velodyne was down 80 per cent this year before Monday's merger announcement. Lidar sensors are being used increasingly in vehicles for the sophisticated environment mapping required for autonomous driving capabilities and safety. Demand for the technology is expected to rise sharply as more vehicles use lidar to enable hands-free driving systems that stop short of full autonomy.
Ouster and Velodyne had a combined cash balance of about $355 million at Sept. 30 and aim to realize annualized cost savings of at least $75 million within nine months of closing the proposed merger, they said in a statement.