Dan Primack & Kirsten Korosec:
Talks between the two companies originally related to a strategic investment by GM in Cruise, which was planning to raise a new round of venture capital funding. But that quickly morphed into an acquisition discussion with the entire agreement getting hashed out in less than six weeks.
Cruise Automation had raised over $18 million in venture capital funding, most recently at a post-money valuation of around $90 million. Investors include Spark Capital, Maven Ventures, Founder Collective, and Y Combinator.
The three-year old company is best known for having created an aftermarket “kit” that allows buyers to convert certain types of cars―namely Audi A4 and S4 models―into autonomous vehicles for highway driving. It But GM appears to be more interested in integrating Cruise’s technology into its original manufacturing process.
General Motors spokesman Kevin Kelly said the company could not comment on the price or the terms of the deal. The transaction is expected to close in the second quarter. Cruise Automation will operate as an independent unit within GM and maintain its offices in San Francisco.