Embark Technology is now a private company after a $71 million transaction. This logistics company specializes in autonomous trucks. Tiger Global Management led the transaction. Sequoia Capital, DCVC, and Y Combinator Continuity were involved. Embark Technology was founded in 2016. It has secured $117 million in funding so far. The company’s self-driving trucks have traveled over one million miles on public roads. Embark Technology will focus on advancing its technological innovations as a private entity.
Embark Name Will Live on
Applied Intuition will keep Embark as a division. Applied Intuition is a supplier of software and hardware for autonomous vehicles. Applied Intuition is based in Mountain View, California. Embark’s autonomous software stack is for large truck manufacturers. It uses machine learning for driving perception. In December, it sent a fully-integrated Kenworth T-680 to Knight-Swift. Embark will retire its fleet of 24 trucks. The trucks have logged over 1.5 million miles of supervised autonomous highway driving since the company’s inception in 2016. This is part of the deal.
Integrating Embark’s Tools
Applied aims to use Embark’s tools, data, and software assets to improve its services for clients in the transportation and automotive industries. Qasar Younis, CEO and co-founder of Applied Intuition thinks the acquisition will enhance their solutions and solve clients’ complex issues. In March, Embark laid off 70% of its personnel. Embark then began to search for ways to move forward. Alex Rodrigues, the CEO, is closing down operations in San Francisco. Brandon Moak, the co-founder, resigned in April.
‘Exciting new chapter’ for Embark
Embark and Applied Intuition will merge in August. Embark employees will join Applied Intuition after the merger. The merger is expected to close in August. Embark would pay a $3 million breakup fee to Applied Intuition if shareholders don’t approve the transaction or if it fails for other reasons. Investors filed a class action suit against Emberk and Northern Genesis. They claimed that certain shares were miscategorized. The investors asked a California federal judge to approve a $2.5 million deal. The deal resolves claims due to the high risk of Embark dissolving or seeking bankruptcy protection.
Embark’s Public Listing and Financial Struggles
Embark merged with Northern Genesis Acquisition Corp. II in 2021. The corporation was formed to acquire other businesses. Embark went public and raised $614 million in cash proceeds. Embark was worth $5.2 billion after the SPAC acquisition. Its current selling price is $71 million.
Embark closed offices in California and Texas in March. They laid off 230 workers, which was almost 70% of their personnel. This signaled the start of the end for the company. The business burned through investor money. It had trouble deploying its technology. This was highlighted at the time.