Ouster Buys Startup Lidar To Master Autonomous Vehicle Technology

JAKARTA - Lidar developer Ouster Inc said on Tuesday October 5 that it has agreed to buy solid-state lidar startup Sense Photonics in an all-stock deal, and will set up a new automotive division to be run by Sense CEO Shauna McIntyre.

Ouster said it would buy privately owned Sense for 9.5 million shares of Ouster, which was valued at about $68 million at Monday's close.

This acquisition was made because investors have curbed their enthusiasm for the lidar startup. Automakers and autonomous driving companies have delayed deployment of high-volume sensors until the middle of the decade, and Tesla Inc Chief Executive Elon Musk said Tesla could do without the technology.

Ouster's share price is down 47% for the year. Rival Luminar Technologies has fallen 57% since January, while Velodyne Lidar Inc has fallen 75% for the year.

The lidar sensor builds a detailed picture of the vehicle's environment using a laser beam. Apart from Tesla, most automakers and autonomous vehicle developers use lidar as part of the sensor array in their automated drive systems.

Ouster CEO Angus Pacala told Reuters acquiring Sense Photonics would accelerate Ouster's year-long effort to secure high-volume contracts with the automaker. Sense brings together solid-state lidar technology, engineers and contract prospects to supply sensors to five automakers by 2025-26, Pacala said.

"We can provide a five-lidar system for $1,000 that surrounds the vehicle, vs. one forward-looking lidar that may cost $1,000 to $2,000," Pacala said.

Ouster will set up an automotive division, stepping up its efforts to secure contracts to supply lidar for off-road vehicles and industrial equipment. About 80 Sense employees are expected to join Ouster, and certain Sense executives have agreed to a five-year retention deal, Ouster said.

Current lidar sensors are too expensive for all but the most expensive consumer vehicles. Its competitors are racing to develop lower-cost digital and solid-state lidars, and are targeting a model to launch in about four years.