Simulation and software provider Applied Intuition is set to acquire Embark Trucks, the autonomous trucking company, in an all-cash transaction valued at approximately $71 million. Embark, which went public through a SPAC merger in 2021, faced challenges in developing and commercializing its autonomous vehicle technology, leading to significant layoffs and office closures earlier this year.
Applied Intuition plans to integrate Embark’s internal tools, data, and software assets into its offerings for customers in the trucking and automotive industries. With a client base that includes major automotive OEMs like General Motors, Volkswagen, and Daimler, Applied Intuition aims to enhance its autonomous vehicle development capabilities through this acquisition.
Under the terms of the agreement, key employees from Embark will join Applied Intuition to facilitate a smooth transition and contribute to the growth of the company’s product suite. Embark shareholders will receive $2.88 per share in cash, subject to the transaction’s completion, which is expected in the third quarter.
Embark Trucks, founded in 2016, had initially attracted attention in the market and raised significant funding. However, the company faced financial constraints, leading to a decline in market capitalization. The acquisition by Applied Intuition follows its recent purchase of SceneBox, a data management and operations platform for machine learning, and a contract with the Army and Defense Innovation Unit for an autonomy software development and testing platform.
The completion of the acquisition will result in the delisting of Embark shares from the Nasdaq stock exchange.