On Wednesday, US self-driving truck developer Embark Trucks announced its intention to go public through a merger with SPAC Northern Genesis Acquisition Corp. II. The cost of Embark Trucks as a result of such a merger is estimated at $ 5.2 billion.
Embark Trucks is the next company to go public through its merger with SPAC, a dedicated M&A structure. In fact, this is a shell company that was previously created by investors with the aim of merging with an enterprise that wants to go public: SPAC conducts an IPO on some stock exchange, and then looks for a company to merge. Over the past year, the popularity of this method of listing has risen sharply, although interest in SPAC has slightly decreased in recent months.
The startup Embark Trucks was created in 2016 in California. The company now has a small number of test versions of trucks that transport cargo in southern California. In the coming years, Embark Trucks plans to obtain a commercial license for its self-driving trucks. The beer maker Anheuser-Busch InBev, the technology company HP and the logistics corporation Knight-Swift are already working with Embark Trucks.