Embark Trucks, Developer of Autonomous Truck Driving Software, Reaches SPAC Merger Deal
Summary
On June 24, Embark Trucks, Inc., a company that develops autonomous vehicle (AV) driving software for the U.S. trucking industry, announced it is merging with special purpose acquisition company (SPAC) sponsor, Northern Genesis Acquisition Corp. II (NYSE: NGAB). One of Embark’s peers, PlusAI Corp., reached a similar merger deal with SPAC sponsor Hennessy Capital Investment Corp. in May. Embark’s system is currently employed by a relatively small number of trucks, but it has partnered with a number of major companies, including Knight-Swift Transportation Holdings Inc., the largest trucker in North America; the beer maker Anheuser-Busch InBev, and HP Inc. (Knight-Swift is expected to make a US$200 million private investment in Embark.) As Embark begins operating on a commercial scale, it expects substantial revenue and EBITDA growth from de minimis amounts today. Furthermore, the company has reached important agreements with many major industry players, and its valuation on projected out-year — of course, possibly optimistic — EBITDA, is more modest than many electric vehicle manufacturers.