VLDR - Velodyne Ouster propose to merge in all-stock deal
- Velodyne ( NASDAQ: VLDR ) shares gained 5% Monday morning after the lidar solutions firm agreed to merge with fellow lidar tech firm Ouster ( NYSE: OUST ) in an all-stock deal.
- Under the terms of the deal, each Velodyne ( VLDR ) share will be exchanged for 0.8204 shares of Ouster ( OUST ) at closing. The transaction will result in existing Velodyne and Ouster shareholders each owning approximately 50% of the combined company, based on current shares outstanding.
- Both companies will continue to operate their businesses independently until the close of the merger transactions, which is expected in the first half of 2023.
- The combined company is expected to drive lidar adoption and result in a strong financial position, increased operational efficiencies, ??and a complementary customer base in fast-growing end-markets. The companies had a combined cash balance of ~$355M at Sep-end, and aim to realize annualized cost savings of at least $75M within nine months after deal closing.
- The combined company will be led by Angus Pacala, who will serve as CEO, and Ted Tewksbury, who will serve as executive chairman of the board.
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Velodyne, Ouster propose to merge in all-stock deal