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Embark Trucks Acquired by Applied Intuition amid Struggles
Embark Trucks, a company that specializes in autonomous trucking, has been acquired by Applied Intuition, a software provider for autonomous vehicle development. The acquisition, which amounts to $71 million in equity value, comes after Embark reduced its workforce by 70% and closed two satellite offices.
SPAC Struggles hinder Embark’s Growth
Embark went public in 2021 via a special purpose acquisition company or SPAC merger. However, the company struggled to develop and commercialize its autonomous vehicle technology, prompting it to reduce its staff and office count.
Exploring Strategic Alternatives
In the wake of these layoffs, Embark’s board began exploring potential strategic alternatives for the company, including asset liquidation or dissolution.
Applied Intuition and Embark
Embark’s shareholders will receive $2.88 per share in cash. Applied Intuition will integrate Embark’s internal tools, data, and software assets to enhance its suite of autonomous vehicle offerings for its customers in the trucking and automotive industries. Key Embark employees will also be absorbed by Applied Intuition to support the seamless integration and growth of the company’s products.
Applied Intuition’s Recent Moves
Applied Intuition acquired SceneBox, a company that built a data management and operations platform specifically for machine learning, just a few months prior. The company also secured a $49 million contract from the Army and Defense Innovation Unit in late 2021 to develop an autonomy software development and testing platform for the Army’s Robotic Combat Vehicle program.
Embark’s Market Value
Embark trucks had an initial market capitalization of $5.2 billion after its merger with SPAC Northern Genesis Acquisition Corp. II. The company reported having $190 million in cash and cash equivalents at the end of the third quarter of 2022, and as of now, the company’s market capitalization is around $70 million.
FAQs
What is Embark Trucks and what happened to it?
Embark Trucks is a company specializing in autonomous trucking. The company reduced its workforce by 70% and closed two satellite offices initiated in March due to struggles in developing and commercializing its autonomous technology.
What is Applied Intuition, and what do they specialize in?
Applied Intuition is a simulation and software provider for autonomous vehicle development. The company aims to create a safer and more connected world using autonomous systems and has customers in the automotive and transportation sectors.
What will happen to Embark’s employees after the acquisition?
Applied Intuition will absorb key Embark employees to support the company’s seamless integration and growth of its products.
What was the purchase value of Embark Trucks?
The acquisition of Embark Trucks was an all-cash transaction with an equity value of $71 million.
What other recent acquisitions have Applied Intuition made?
Applied Intuition recently acquired SceneBox, a data management and operations platform for machine learning, and secured a $49 million contract with the Army and Defense Innovation Unit to develop an autonomy software development and testing platform for the Army’s Robotic Combat Vehicle program.
What is the current market capitalization of Embark Trucks?
As of now, Embark Truck’s current market capitalization is around $70 million.
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