Ouster and Velodyne Announce Proposed Merger to Accelerate Lidar Adoption

Two leading US lidar developers, Ouster and Velodyne, have entered into a definitive agreement to merge in an all-stock transaction. The proposed merger is expected to drive significant value creation and result in a strong financial position through product offerings, increased operational efficiencies, ​​and a complementary customer base.

The combined company will be led by Angus Pacala, who will serve as Chief Executive Officer, and Dr. Ted Tewksbury, who will serve as Executive Chairman of the Board.

The transaction will result in existing Velodyne and Ouster shareholders each owning approximately 50% of the combined company, based on current shares outstanding.

The merger transactions are expected to be completed in the first half of 2023.

Velodyne has developed real-time surround view lidar sensors. Ouster has developed high-resolution digital lidar sensors for the automotive, industrial, smart infrastructure, and robotics industries. 

Ouster CEO, Angus Pacala, says: “Ouster’s cutting-edge digital lidar technology, evidenced by strong unit economics and the performance gains of our new products, complemented by Velodyne’s decades of innovation, high-performance hardware and software solutions, and established global customer footprint, positions the combined company to accelerate the adoption of lidar technology across fast-growing markets with a diverse set of customer needs. Together, we will aim to deliver the performance customers demand while achieving price points low enough to promote mass adoption.”

“Lidar is a valuable enabling technology for autonomy, with the ability to dramatically improve the efficiency, productivity, safety, and sustainability of a world in motion. We aim  to create a vibrant and healthy lidar industry by offering both affordable, high-performance sensors to drive mass adoption across a wide variety of customer applications, and by creating scale to drive profitable and sustainable revenue growth,” adds Velodyne CEO, Dr. Ted Tewksbury. “The combination of Ouster and Velodyne is expected to unlock enormous synergies, creating a company with the scale and resources to deliver stronger solutions for customers and society, while accelerating time to profitability and enhancing value for shareholders.”

Velodyne is based in San Jose, California. Ouster is headquartered in San Francisco with offices in the Americas, Europe, Asia-Pacific, and the Middle East.