A leader in UAV lidar technology called Ouster has just received funding for a merger with Colonnade Acquisition Group.
Reuters coverage of the deal indicates that the joining will help Ouster to “rapid scale across key end markets.”
As for what those markets are, resources in the industry show North America being a major market for this technology. Of course, lidar is being put into new vehicles, but analysts also cite corridor mapping and urban planning as additional uses for the laser technology.
“The LiDAR Market size is projected to reach USD 2.8 billion by 2025 from an estimated USD 1.1 billion in 2020, at a CAGR of 20.7% from 2020 to 2025,” write analysts at MarketsandMarkets. “The rising adoption of LiDAR systems in UAVs, increasing adoption of LiDAR in engineering and construction applications, use of LiDAR in geographical information systems (GIS) applications, the emergence of 4D LiDAR, and easing of regulations related to use of commercial drones in different applications are among the factors driving the growth of the LiDAR market.”
“Ouster is powering the vision for an autonomous future where lidar-powered solutions are ubiquitous and built into every part of the industrial economy,” Ouster co-founder and CEO Angus Pacala said in a press statement. “We have established a strong business with a disruptive digital lidar technology, a diversified customer base, and global manufacturing and supply chain capabilities that are scaling toward high volume production. We believe the combination with Colonnade will enable us to further accelerate the adoption of our proven technology across multiple end markets and realize a safer, smarter, more efficient future.”
To put this deal in perspective, Ouster is currently valued at around $1.9 billion, with $19 million of revenue annually; the new deal will inject some $300 million into Ouster’s operational profile.
On news of the deal, Colonnade’s stock rose precipitously. There will soon be a new ticker, OUST, with its own IPO price.
The emergence of lidar technology is a major part of what’s helping self-driving and autonomous vehicles to emerge on the American roadway. To that end, investment in this technology is a way for forward-thinking companies to get in on the ground floor of what will promise to be a growing business. Think about that as you invest.