Ouster and Velodyne complete acquisitiion to drive Lidar adoption
Ouster, a leading provider of high-resolution digital lidar, and Velodyne, a global player in lidar sensors and systems, have announced the successful completion of their merger of equals, effective February 10, 2023. The combined company will keep the name Ouster.
The merger creates a lidar powerhouse with over 850 customers spanning the automotive, industrial, robotics, and smart infrastructure industries supported by a robust product portfolio of innovative hardware and software in addition to top-tier engineering and commercial teams. Following integration, the combined Ouster expects to retain approximately 350 employees with its headquarters in San Francisco and key offices across the Americas, Europe, and Asia-Pacific. The merger is expected to drive significant cost synergies and value creation for the combined company and its stakeholders.
Key strengths of the combined company include:
- Robust product portfolio to serve current and prospective customers, including Ouster OS and DF series sensors, Velodyne Lidar sensors, and Ouster Gemini and Bluecity software;
- Expanded partner ecosystem and distribution channels to accelerate market penetration;
- Innovative digital lidar roadmap and software strategy to drive product adoption and new high-margin revenue streams;
- Extensive intellectual property portfolio with 173 granted and 504 pending patents, backed by over 20 years of combined experience in lidar technology innovation;
- Strong financial position with a combined cash balance of over $315 million as of December 31, 2022; and
- On track to exceed previously projected annualized operating expenditure synergies of $75 million, compared to standalone cost structures as of September 30, 2022, within 9 months.
“We have completed the merger with Velodyne so quickly, further boosting our financial position and our ability to accelerate lidar adoption,” said Angus Pacala, CEO of Ouster. “Together, we have an even stronger team backed by a healthy balance sheet, new channel partners, and a wide selection of positive-margin products to serve a diverse set of customers and win more deals than ever before. We expect our innovative digital lidar roadmap, amplified by exciting new software, to further expand our serviceable market and catalyze growth across the business.”
Ouster will provide a comprehensive update on its integration plans, including its product offering, technology roadmap, manufacturing and operations footprint, commercial strategy, and additional synergies across the business, on its fourth quarter 2022 earnings call.
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