Embark, a San Francisco-based self-driving trucking company, is set to be acquired by Applied Intuition, a software provider for autonomous vehicles based in Mountain View. The acquisition, an all-cash transaction, is valued at approximately $71 million. Embark’s future has been uncertain since March when it announced significant layoffs and the closure of two offices. CEO Alex Rodrigues expressed the company’s struggle to find a way forward and began exploring the sale of assets and potential dissolution.
However, with this acquisition, Embark’s path forward becomes clear. Rodrigues sees it as an exciting new chapter for the company and is eager to witness the development of the technology by Applied Intuition. The agreement, approved unanimously by both companies’ boards of directors, stipulates that Embark shareholders will receive $2.88 per share in cash.
Embark, founded in 2016, has focused on the self-driving trucking industry. It has developed a machine learning-based autonomous software stack and specialized hardware optimized for autonomy. The company claims to have conducted extensive real-world testing and deployment, covering over 1.5 million miles. Embark has partnered with prominent companies such as Anheuser-Busch, Werner Enterprises, and Bison Transport. In 2021, it announced a merger with Northern Genesis Acquisition Corp. II in a deal worth $5.16 billion.
Like many other players in the autonomous vehicle industry, Embark has faced funding challenges and struggled to commercialize its technology. Applied Intuition plans to integrate Embark’s internal tools, data, and assets to enhance its software offerings for customers in the trucking and automotive sectors. Applied Intuition counts major automakers like Nissan, Toyota, and the Volkswagen Group among its high-profile clients, as well as industry leaders such as Daimler Torc and Kodiak Robotics in the trucking field.
As part of the acquisition, Embark will retire its fleet of test vehicles, while some key employees are expected to remain to support Applied Intuition and expand its range of products. Qasar Younis, co-founder and CEO of Applied Intuition, expressed excitement about the acquisition, believing it will advance their products and enable them to solve more specific and complex challenges for their global customer base. Applied Intuition values Embark’s accomplishments in the autonomous vehicle industry and looks forward to leveraging their expertise.
