Uber sells ABG self-driving division to Aurora

Uber sells ABG self-driving division to Aurora

The companies announced on Monday that Uber’s self-driving division, Advanced Technology Group (ADG), will be acquired by its inaugural competitor Aurora Innovation.

The deal is expected to close in the first quarter of 2021, with ATG estimated at about $ 4 billion. Unit value 25 7.25 billion When Softbank, Tenzo and Toyota took a stake in April 2019.

Uber CEO Tara Kosroshahi will join the company’s board, and ride-sharing company will invest $ 400 million in the company.

Overall, Uber and ATG investors and employees are expected to hold a 40% stake in Aurora, according to a regulatory filing with the deal; Uber holds only 26% stake. According to one person familiar with the terms of the deal, the initial $ 10 billion transaction will take place.

“In addition to ATG, Aurora will have an incredibly strong team and technology, with a clear path to many markets and resources to deliver,” said Aurora co-founder and CEO Chris Urmson in a statement. “Simply put, Aurora is in the best position to provide the self-driving products needed to make transportation and logistics safe, accessible, and affordable.”

Tech Crunch First announced In November, the two companies held talks for ADG. Travis Colonick, co-founder and former CEO of Uber, was seen driving a self-driving car An essential investment, He hoped that in 2016 the world would turn to autonomous vehicles.

“Some technologies as self-driving vehicles promise to improve people’s lives with safe, accessible and eco-friendly transportation,” Uber CEO Kosroshahi said in a statement. “For the past five years, our unique team at ATG has been at the forefront of this effort — joining forces with Aurora, and they are now polarized to deliver on that promise even more quickly.”

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Aurora is supported by major venture companies including Hyundai, Amazon and Greylock and Sequoia.

ADG was a long-term drama for Uber, but the unit came with high costs Security challenges. During an epidemic year, Uber made efforts to prevent losses in its riding business, control business costs – including major layoffs in the spring – and grow its distribution business.

Earlier this year, Uber Sparked controversy Lime, another micro-mobility company that has been invested in by riding hail – by replacing its electric bike distribution subsidiary Jumbo. Umber acquired Jumbo directly in 2018 with the stated intention of driving and developing the brand independently.

– CNBC’s Lora Collotney contributed to this report.

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