Self-driving truck startup Kodiak Robotics said on Monday it will go public via a merger with special purpose acquisition company (SPAC) Ares Acquisition Corporation II, in a deal that values the company at approximately $2.5 billion before new funding.
The transaction includes more than $110 million in committed financing from new and existing institutional investors, including Soros Fund Management, ARK Investment Management, and Ares Management. The merger is also backed by $551 million in cash held in trust by the SPAC, subject to redemptions. The companies expect the deal to close in the second half of 2025.
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Founded in 2018, Kodiak has raised about $243 million to date. The firm aims to commercialize long-haul autonomous trucking and says it has logged more than 2.6 million miles in autonomous driving. In January, the company delivered its first autonomous trucks to customer Atlas Energy Solutions, which has committed to purchasing 100 vehicles to support operations in the Permian Basin.
“We believe entering the public markets will accelerate our strategy to expand our existing partner relationships, provide our technology to a broader customer base, and deliver enhanced solutions across the commercial trucking and public sector industries,” Kodiak CEO Don Burnette said in a statement.
Kodiak’s decision to pursue a SPAC merger comes at a challenging time for the autonomous vehicle sector, which has seen high-profile exits including Embark and TuSimple. SPACs themselves have also cooled after a surge in popularity in 2020 and 2021, especially among capital-intensive industries like autonomous and electric vehicles.
Kodiak is among a smaller group of AV companies that generate revenue, potentially making it more attractive to public market investors. Still, the company faces a long path to profitability in a sector known for its high development costs. Rival Aurora Innovation is expected to begin fully driverless commercial trucking operations later this month.