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‘Volkswagen investing in Argo AI’
Posted on Friday, 12 July 2019 11:53
German automotive giant Volkswagen is to take a stake in Argo AI, the self-driving car unit of US firm Ford, according to Reuters.
Citing a source close to the situation, the news provider said the Wolfsburg-headquartered firm will inject USD 2.60 billion into the business, thereby valuing it at USD 7.00 billion.
Of this amount, USD 1.00 billion will be in the form of capital, with USD 1.60 billion in own business activities, the people said.
Following completion, VW and Ford will own equal stakes in Argo.
The companies have unveiled plans to hold a news conference later today, as part of which they will provide an update on their global alliance.
Reuters noted that joining forces on Argo will enable the parties to lower engineering and development costs while accelerating their deployment timetables.
Founded in 2016, the target’s aim is to deliver a fully-integrated self-driving system which can be manufactured at scale for safe and reliable deployment in ride sharing and goods delivery services.
Thus far, it has partnered with the Georgia Institute of Technology and Carnegie Mellon University.
According to Zephyr, the M&A database published by Bureau van Dijk, Ford first bought into the company in February 2017, when it agreed to inject USD 1.00 billion over the course of five years.
Argo completed an acquisition of its own in October 2017, when it took over New Jersey-based optical components and modules manufacturer Princeton Lightwave from First Analysis. The deal included the target’s patents.
There have been 2,919 deals targeting scientific research and development companies announced worldwide since the start of 2019, Zephyr shows.
Of these, the most valuable involved Danaher agreeing to buy the BioPharma business of General Electric for USD 21.40 billion in late February.
© Zephus Ltd