12 March, 2016, USA: General Motors has cleared its path to acquire Cruise Automation, a San Francisco-based developer of autonomous vehicle technology, as per the announcement made by the company. Although the company has not revealed the financial details of the deal, but the source close to the development informed that it is going to be a billion dollar deal of cash and stock.
Talks between the two companies originally related to a strategic investment by GM in Cruise, which was planning to raise a new round of venture capital funding. But that quickly morphed into an acquisition discussion with the entire agreement getting hashed out in less than six weeks, reports Fortune.
In its recent round of funding, Cruise Automation had acquired more than US $18 million fund at a valuation of around US $90 million. The funds were raised from the investors which include Spark Capital, Maven Ventures, Founder Collective, and Y Combinator.
Cruise Automation excels in manufacturing a unique ‘kit’ for specific car models such as Audi A4 and S4 models. This kit enables the buyer to put their vehicle on self-driving mode while travelling through highway.
Commenting on the deal, Kevin Kelly, Spokesperson, GM said, “The company could not comment on the price or the terms of the deal. The transaction is expected to close in the second quarter. Cruise Automation will operate as an independent unit within GM and maintain its offices in San Francisco.The plan is to grow the company aggressively and to get the best talent it can.”