Aurora, which develops hardware and software that enables vehicles to drive autonomously, said on Thursday that it is getting listed through a SPAC merger.
In order to go public, Aurora has entered into a deal with special purpose acquisition company Reinvent Technology Partners (RTP), which will close this year, thus setting up the merged company with $2.5 billion in cash. Once the SPAC merger is complete, Aurora will trade on the Nasdaq under the ticker symbol AUR with a total valuation of $11 billion.
Commenting on the development, Aurora co-founder and CEO Chris Urmson said, "This is a natural next step for us. This will unlock the capital we need to deliver the Aurora driver as a service at scale."
The self-driving technology start-up has entered into partnership with companies like Toyota, Uber and truck manufacturers Volvo and Paccar and is thus aiming to include a wide range of vehicles, delivery services and mobility firms for its technology. Aurora said that the final aim is to enable vehicles to achieve Level 4 autonomous driving, a level at which human presence is not required when the vehicles are on the road.
Aurora expects to have its self-driving technology integrated into Volvo and Paccar Class 8 trucks by late 2023. As these trucks will operate autonomously on streets and highways, they will generate revenue per mile for the company.
Mark Pincus, co-founder and director of Reinvent Technology Partners, said that the company invested in Aurora because it was a "clear leader" in the industry. "This is a no-brainer for us to be in the mix. It represents everything we are looking for in the autonomous vehicle market," he added.
As per Aurora, the global trucking, last-mile delivery and ride-hailing markets are worth a combined $9.4 trillion. In short, they represent a huge opportunity, which explains why automakers like GM, Tesla and Volkswagen are investing billions to develop autonomous vehicles in this market.
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