Embark (EMBK) to Be Acquired by Applied Intuition at $2.88 Per Share
by Nicholas Alan Clayton on 2023-05-26 at 9:23am

Embark Technology (NASDAQ:EMBK), which combined with Northern Genesis II in November 2021, announced this morning that it has agreed to merge with software firm Applied Intuition.

The all-cash deal would give the company a total equity value of $71 million – a far drop from the roughly $5 billion valuation it had upon its Nasdaq debut.

Shareholders are to receive $2.88 per share in cash, but Embark completed a 20-for-1 reverse stock split in August 2022, so any investors along for the ride from the start are effectively receiving $0.144 per share.

The parties expect to close the deal in the third quarter, after which both its shares and warrants will cease trading and Embark will once again be a private company. The last time it held that status, it had reached a venture-backed valuation of $520 million following its 2019 Series C, according to Pitchbook.

Some portion of Embark’s technology will be put to use by Applied Intuition, which has helped develop autonomous driving software for many electronics manufacturers and top automakers including Toyota (NYSE:TM), Nissan (TYO:7201) and Volksvagen (FRA:VOW).

But, Embark’s fleet of test vehicles will be retired as a result of the transaction. This fleet was aimed at proving its technology could automate the highway driving for heavy trucks.

The company’s business model was based on the notion that, once proven, it could effectively charge trucking companies a competitive rate per driving hour at a time when the industry faces an acute labor shortage.

This result is likely to turn eyes towards Embark’s autonomous trucking peer Aurora (NASDAQ:AUR), which similarly de-SPAC’d with Reinvent Technology Y in November 2021 at a $10.5 billion valuation.

Aurora has faced the same scrutiny as a pre-commercialization tech stock in the current market and has fallen to a Thursday close at $1.34. But, it also had a much longer runway to work with from the get-go, raising $1.8 billion in total proceeds from its SPAC deal while Embark came away with about $300 million at close.

In fact, Aurora may even view the news positively. It noted in its May presentation that “the competitive landscape in autonomous trucking is clearing” and it remains among the last standing with projects approaching completion.

It is currently hauling freight for FedEx (NYSE:FDX), Schneider Electric (PA:SU), Uber Freight (NYSE:UBER) and others along two lanes in Texas — one running between the Dallas and Houston metro areas and the other between Dallas and El Paso.

Aurora plans to transition these pilots into a full commercial launch in the second half of 2024.

 

Recent Posts
by Nicholas Alan Clayton on 2024-11-06 at 4:30pm

Artius II Acquisition Inc. (NASDAQ:AACB) has filed for a $200 million IPO with terms that resurrect the unique tontine structure earlier employed, but never fully tested by Pershing Square Tontine in 2020. The SPAC’s units are to contain both a 1/10 right and one contingent right to receive a pro rata share of 1,000,000 to...

by Nicholas Alan Clayton on 2024-11-06 at 8:22am

At the SPAC of Dawn The SPAC world got its first de-SPAC chairman/US president-elect last night as former President Donald Trump has stamped his return to the Oval Office in the 2024 presidential elections. Futures are up hugely across the board and, the result has provoked expected bumps in conservative de-SPACs beyond Trump Media (NASDAQ:DJT),...

by Nicholas Alan Clayton on 2024-11-05 at 8:17am

At the SPAC of Dawn With the world’s eyes fixated on the US presidential elections today, de-SPAC Trump Media (NASDAQ:DJT) continues to be just as active of a gauge of retail expectations if not voter intentions. It is back on the upswing with a +12.4% gain yesterday and a further +9.5% boost in the pre-market....

by Nicholas Alan Clayton on 2024-11-04 at 1:57pm

Cantor Equity Partners I, Inc. (NASDAQ:CEPO) has filed for a $200 million IPO with near identical terms to its sister SPAC Cantor Equity Partners, Cantor Equity Partners (NASDAQ:CEP), giving the team a second vehicle in the mix with terms designed to be particularly attractive to targets. It would be the fourth SPAC to IPO in...

by Kristi Marvin on 2024-11-04 at 8:13am

This week, we speak with Betsy Cohen and Maxwell Smeal from the Cohen Circle Acquisition Corp. I team to get their views on the current SPAC landscape. Betsy Cohen is already a well-known figure in SPAC circles for having previously led the Fintech Acquisition and FTAC SPACs. Betsy and Max discuss the past, present and...

logo

Copyright © 2023 SPACInsider, Inc. All Rights Reserved