In a recent announcement, Ouster and Velodyne successfully consummated their merger of equals effective February 10, 2023, paving the way for a lidar powerhouse.

Ouster is a leading provider of high-resolution digital lidar. Meanwhile, Velodyne is a global player in lidar sensors and solutions. The combined company will keep the name Ouster and continue to trade on New York Stock Exchange under the ticker “OUST.”

The merger creates a lidar powerhouse with over 850 customers. These span the automotive, industrial, robotics, and smart infrastructure industries. Also, it is supported by a robust product portfolio of innovative hardware and software solutions in addition to top-tier engineering and commercial teams. Following integration, the combined Ouster expects to retain approximately 350 employees. It will have its headquarters in San Francisco and key offices across the Americas, Europe, and Asia-Pacific. The merger expects to drive significant cost synergies and value creation for the combined company and its stakeholders.

Key Strengths of the combined Company

The new company holds a robust product portfolio to serve current and prospective customers. Among them include Ouster OS and DF series sensors, Velodyne Lidar sensors, and Ouster Gemini and Bluecity software. Also, the merger creates an expanded partner ecosystem and distribution channels to accelerate market penetration.

Moreover, an innovative digital lidar roadmap and software strategy is laid out to drive product adoption and new high-margin revenue streams. Additionally, the new company now shares an extensive intellectual property portfolio with 173 granted and 504 pending patents, backed by over 20 years of combined experience in lidar technology innovation. It boasts of a strong financial position with a combined cash balance of over US$315 million as of December 31, 2022. The new company is on track to exceed previously projected annualized operating expenditure synergies of US$75 million, compared to standalone cost structures as of September 30, 2022, within nine months.

“We’re thrilled to have completed the merger with Velodyne so quickly, further boosting our financial position and our ability to accelerate lidar adoption,” said Angus Pacala, CEO of Ouster. “Together, we have an even stronger team backed by a healthy balance sheet, new channel partners, and a wide selection of positive-margin products to serve a diverse set of customers and win more deals than ever before. We expect our innovative digital lidar roadmap, amplified by exciting new software solutions, to further expand our serviceable market and catalyze growth across the business.”

Ouster will provide a comprehensive update on its integration plans on its fourth quarter 2022 earnings call. Among them include product offering, technology roadmap, manufacturing and operations footprint, commercial strategy, and additional synergies across the business.

Leadership and Governance

Ouster’s executive leadership team comprises of  Angus Pacala, Chief Executive Officer; Mark Frichtl, Chief Technology Officer; Mark Weinswig, Chief Financial Officer; Darien Spencer, Chief Operations Officer; Nate Dickerman, President of Field Operations; and Megan Chung, General Counsel.

Meanwhile, Ouster’s eight-member Board of Directors comprises of Dr. Ted Tewksbury, Executive Chairman; Angus Pacala, Chief Executive Officer; Susan Heystee, Lead Independent Director; Virginia Boulet; Ernest Maddock; Karin Radstrom; Kristin Slanina; and Riaz Valani.

“The combined Ouster is stronger than ever, led by an esteemed executive leadership team and Board with deep company, industry, and financial expertise,” said Dr. Ted Tewksbury, Executive Chair of Ouster’s Board of Directors. “Ouster is well positioned as a global leader in lidar backed by the talent, products, and technology roadmap to make performant and affordable lidar solutions pervasive while accelerating time to profitability and enhancing value for stockholders.”