Aurora has merged with a SPAC in a deal that will reportedly raise $2 billion for the autonomous vehicle start-up.
Aurora, a developer of technology for self-driving cars and trucks, is reportedly joining the rush to raise funds, through a special-purpose acquisition company (SPAC) merger that will increase the company’s net by $2 billion, and boost its valuation to an estimated $11 billion. The valuation is reportedly the highest of any autonomous vehicle company to go public thus far.
The SPAC merger will be between the company and Reinvent Technology Partners. The new company will reportedly trade on Nasdaq under the ticker, “AUR.” Included in the investment are transportation heavyweights, PACCAR and Volvo, as well as Toyota and Uber. The firms that will participate in the merger reportedly include Baillie Gifford, Counterpoint Global, Primecap Management, Fidelity, Sequoia Capital, Index Ventures, and Reinvent Capital.
A spokesperson for Reinvent Capital stated that self-driving technology is a huge market, and it is constantly expanding. He went on to state that Aurora is Reinvent’s best bet to capitalise on this opportunity, because of the company’s team, technology and partnerships.
Furthermore, according to reports, the move comes during a surge in the listing of electric and autonomous vehicle start-ups. The surge is reportedly occurring mostly through mergers with SPACs. Additionally, the company’s announcement is reportedly the most anticipated merger for an autonomous tech developer since San Diego-based TuSimple, a company that specialises in robotic trucks, went public through an initial public offering (IPO) in early 2021.
Despite the exciting new approach, reports suggest that Aurora is likely to occur post annual losses until 2026, five years after going public. This is reportedly because its generated revenue will be insignificant for the following years. The company reportedly said that its revenue target for 2025 is $123 million and $2 billion by 2027.
Aurora estimated that it will have $2.5 billion in cash after the deal closes.