Ouster To Acquire Sense Photonics For Roughly $68M

Ouster Inc OUST agreed to acquire Sense Photonics, which has developed a digital solid-state lidar sensor for automotive series production.
Ouster plans to issue 9.5 million shares worth $68.02 million, based on Ouster's October 4 closing price of $7.16.
Ouster plans to establish Ouster Automotive, a new functional division focused on driving mass-market adoption of digital lidar in consumer and commercial vehicles, cementing Ouster's position as a market leader across auto and non-auto industry verticals.
Combining Ouster's digital expertise and maturity in product development and manufacturing with Sense's advanced solid-state digital lidar silicon will accelerate the delivery of our multi-sensor digital lidar suite for the consumer ADAS market, Ouster CEO Angus Pacala said.
Ouster management expects the cash impact of approximately $17 million additional operating expense in 2022 to be wholly offset by roughly $17 million R&D savings.
Approximately 80 Sense employees are expected to join Ouster post-transaction; certain employees of Sense have agreed to five-year retention packages. The transaction will likely close in Q4 of 2021.
Ouster held $240.4 million in cash and equivalents as of June 30.
Price Action: OUST shares traded higher by 3.07% at $7.38 on the last check Tuesday.