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Embark Trucks Announces SPAC Merger With Northern Genesis

Embark, a software developer for self-driving trucks, will combine with SPAC Northern Genesis Acquisition Corp. to create a firm with an equity value of $5.16 billion.
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Embark Trucks announced Wednesday that it’s merging with special acquisition company Northern Genesis Acquisition Corp. II NGAB.

The maker of software for self-driving trucks will become publicly listed following the completion of the deal. Embark currently works with Anheuser-Busch InBev, HP Inc., Werner Enterprises, Mesilla Valley Transportation and Bison Transport to help prepare those firms' fleets to integrate self-driving technology.

Shares of Northern Genesis were up 0.7% to $9.95 on Wednesday afternoon.

The five-year-old Embark says it has more than one million real world miles driven without a Transportation Department-reportable incident.

“The transaction reflects an implied pro forma equity value of $5.16 billion and enterprise value of $4.55 billion,” the companies said. The combined company will receive approximately $614 million in gross cash proceeds upon the closing of the deal.

That will include $414 million of cash held in the trust account of Northern Genesis 2, assuming no redemptions by NGAB stockholders, and a $200 million fully committed PIPE (private investment in public equity) at $10 per share.

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The PIPE includes Canada Pension Plan Investment Boar, Knight-Swift Transportation, Mubadala Capital, Sequoia Capital and Tiger Global Management.

Elaine Chao, the former U.S. Secretary of Transportation and Labor, has joined Embark’s board of directors.

The deal is expected to close in the second half of this year.

In other SPAC news, shares of the consumer genetic testing company 23andMe  (ME) - Get Report began trading last Thursday.

23andMe, Sunnyvale, Calif., has built what it calls the world's largest crowdsourced platform for genetic research. The merger was completed with VG Acquisition.

Also earlier this month, hedge-fund billionaire Bill Ackman's Pershing Square Tontine Holdings SPAC agreed to take a 10% stake in Universal Music Group.