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Aurora to Acquire Uber's (UBER) Autonomous Unit ATG, Uber to Make $400M Investment in Aurora

December 7, 2020 4:11 PM

On December 7, 2020, Uber Technologies, Inc. (NYSE: UBER) and Apparate USA LLC (ATG), the Company’s subsidiary focused on the development and commercialization of autonomous vehicle technologies, entered into a definitive agreement with Aurora Innovation, Inc. (“Aurora”) and certain other parties, pursuant to which, through a series of merger transactions, Aurora will acquire ATG. In addition, at the closing of the merger transactions, the Company will make a $400 million cash investment in Aurora. After giving effect to the merger transactions and the investment, the Company, together with existing ATG investors, and ATG employees who continue their employment with Aurora, are expected to collectively hold an approximately 40% ownership interest in Aurora on a fully diluted basis. The Company itself is expected to hold an approximately 26% ownership interest in Aurora on a fully diluted basis. In addition, at the closing of the transactions, the Company and Aurora will enter into a collaboration agreement pursuant to which they will collaborate with respect to the launch and commercialization of self-driving vehicles on the Company’s ridesharing network. The completion of the transactions is subject to the expiration or termination of any waiting period (and any extension thereof) applicable to the transactions under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and other customary closing conditions and is expected to close in the first quarter of 2021.

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