Ouster to Acquire Sense Photonics, Targeting Automotive LiDAR Market

Ouster to Acquire Sense Photonics in $68 Million Deal

Ouster, a lidar manufacturer that became publicly traded through a SPAC merger earlier this year, has announced its intention to acquire Sense Photonics, a startup specializing in solid-state lidar technology.

The acquisition, executed entirely in stock, was valued at approximately $68 million at Monday’s market close.

Formation of Ouster Automotive

Upon completion of the acquisition, Ouster will establish a dedicated division named Ouster Automotive.

This new business unit will be led by Sense Photonics CEO, Shauna McIntyre.

Ouster Automotive will focus on integrating Sense’s solid-state lidar, boasting a 200-meter range, into a newly developed lidar suite.

Automotive OEM Negotiations

According to an official statement, Ouster Automotive will prioritize advancing discussions with five automotive original equipment manufacturers (OEMs).

Specific details regarding these potential partnerships remain undisclosed at this time.

Should these negotiations prove successful, production is anticipated to commence in either 2025 or 2026.

The Importance of Lidar in Autonomous Vehicles

Lidar, or “light detection and ranging,” is a crucial sensor component in most autonomous driving systems.

It utilizes lasers to accurately measure distances and create a detailed three-dimensional map of the surrounding environment.

Alongside radar, cameras, and sophisticated software, lidar plays a vital role in the advanced vehicle (AV) systems developed by industry leaders such as Waymo and Argo AI.

Industry Consolidation

Ouster CEO Angus Pacala predicted industry consolidation earlier this year, stating on the “Shift” podcast that the lidar market would likely be dominated by only three to five major companies within the next five years.

This acquisition signifies Ouster’s proactive approach to leading this predicted consolidation.

SPAC Merger and Stock Performance

Ouster finalized its merger with a special-purpose acquisition company (SPAC) earlier this year, resulting in a valuation of $1.9 billion.

The company joined competitors like Luminar, Innoviz, and Velodyne in utilizing the SPAC route to enter the public market.

Ouster’s stock reached a year-to-date high of $15.39 in February, but currently trades at $7.41.

Sense Photonics Employees

A Ouster spokesperson confirmed to TechCrunch that the majority of Sense Photonics’ 80 employees are expected to join McIntyre in transitioning to Ouster.