Uber sells autonomous driving unit ATG to Aurora in $4bn all-stock deal
11 December 2020
Uber Technologies Inc is selling its autonomous driving unit, Uber Advanced Technologies Group (ATG), to self-driving car startup Aurora, in an all-stock deal that values ATG at $4 billion, the companies said on Monday.
The transaction is at a very low valuation considering that ATG had raised $1 billion from a consortium of investors, including Toyota Motor Corp and SoftBank Group Corp, at a valuation of $7.25 billion last year.
As part of the deal, Uber is also investing $400 million in Aurora, which values Aurora at $10 billion. Uber will hold about 26 per cent ownership interest in Aurora on a fully diluted basis, the companies said in regulatory filings.
Aurora, which is developing self-driving trucks, cars and delivery vehicles, will collaborate with Uber to launch self-driving vehicles on its ride-hailing and food delivery network. Uber is also working on building out its freight logistics platform but is not operating its own trucks at present.
Aurora said it is acquiring Uber’s self-driving unit, Advanced Technologies Group, to accelerate development of its Aurora Driver project. The strategic partnership with Uber will help deliver the benefits of self-driving technology, and set a new culture where the two companies win together.
ATG's team and technology will accelerate our mission and the delivery of our first product safely, quickly, and broadly it added.
“With the addition of ATG, Aurora will have an incredibly strong team and technology, a clear path to several markets, and the resources to deliver. Simply put, Aurora will be the company best positioned to deliver the self-driving products necessary to make transportation and logistics safer, more accessible, and less expensive,” said Chris Urmson, co-founder and CEO of Aurora.
ATG will strengthen and accelerate the first Aurora Driver applications for heavy-duty trucks while allowing the company to continue and accelerate work on light-vehicle products.
In addition to acquiring ATG, Aurora also announced a strategic partnership with Uber that connects technologies of both companies – Aurora’s autonomous trucking Uber’s passenger mobility.
Uber will be investing $400 million in Aurora and Uber CEO Dara Khosrowshahi is joining Aurora’s board.