Embark Trucks to go public via SPAC: All you need to know

3 min read | June 28, 2021 01:31 PM PDT | By Kiran Murali

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Embark Trucks to go public via SPAC: All you need to know — Image source: Viktoriia Hnatiuk,Shutterstock

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Summary

The autonomous truck company will become public via a SPAC merger.

The business combination will give Embark a market capitalization of US$5.16 billion and an enterprise value of US$4.55 billion.

Embark eyes US$614 million in cash proceeds from the transaction.

Embark Trucks, Inc. is the latest company to announce its plans to become public through a reverse merger. The California-based autonomous truck startup’s plan to become a public company comes a few months after its competitor TuSimple Holdings Inc. (NASDAQ:TSP) went for an IPO.

Some of the notable automakers that became public via the SPAC route includes Electric Last Mile Solutions, Inc. (NASDAQ:ELMS), Nikola Corporation (NASDAQ:NKLA) and Lordstown Motors Corp. (NASDAQ:RIDE).

Embark opts SPAC route to become public

Last week, Embark said it would become a public company by merging with blank check company Northern Genesis Acquisition Corp. II (NYSE:NGAB).

The business combination will give the company a market capitalization of US$5.16 billion and an enterprise value of US$4.55 billion.

Embark eyes US$614 million in gross cash proceeds from the transaction. It includes US$414 million of cash with Northern Genesis and a US$200 million fully committed PIPE at US$10 per share. The PIPE investors will include Canada Pension Plan Investment Board, Mubadala Capital, Knight-Swift Transportation and Sequoia Capital.

The boards of Embark and Northern Genesis 2 have approved the merger. The transaction requires approval by shareholders of Northern Genesis.

Embark expects the merger to be effective in the second half of 2021. Citi is the financial and capital markets advisor in the transaction.

Source: Pixabay

What do Embark Trucks do?

Embark, which was founded in 2016, provides software-as-a-service to power autonomous trucks.

The company has tie-ups with carriers and shippers such as Werner Enterprises, Mesilla Valley AB InBev and HP Inc. to commercialize self-driving trucks.

Recently, Embark unveiled a set of standardized autonomous driving components and interfaces: Embark Universal Interface, or EUI. The EUI helps to truck original equipment makers to integrate Embark's self-driving technology in their vehicle platforms.

Meanwhile, Embark is eyeing the carrier operation of autonomous trucks in the US in 2024, for which the company will use the proceeds from the merger.

Please note: The above constitutes a preliminary view, and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.

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