Ouster, Velodyne Announce All-stock Merger; Ouster Up In Pre-market

(RTTNews) - Ouster, Inc. (OUST), a provider of high-resolution digital lidar, and Velodyne Lidar, Inc. (VLDR, VLDRW), lidar sensors and solutions firm, announced on Monday that they have signed a definitive deal for their all-stock merger.

According to the deal, expected to be closed in the first-half of 2023, each Velodyne share will be exchanged for 0.8204 shares of Ouster at closing.

The transaction will result in existing Velodyne and Ouster shareholders each owning around half of the combined company.

Velodyne CEO of Ted Tewksbury, said: "The combination of Ouster and Velodyne is expected to unlock enormous synergies, creating a company with the scale and resources to deliver stronger solutions for customers and society, while accelerating time to profitability and enhancing value for shareholders."

Barclays is serving as financial advisor and Latham & Watkins LLP is serving as legal advisor to Ouster.

BofA Securities, Inc. is serving as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal advisor to Velodyne.

OUST was trading up by 4.27 percent at $1.22 per share in pre-market on the New York Stock Exchange.