Kodiak to Go Public via Business Combination with Ares Acquisition II
Deal News | Apr 14, 2025 | EIN
Kodiak Robotics, a leading company in autonomous vehicle technology, is set to go public through a business combination with Ares Acquisition Corporation II, a special purpose acquisition company affiliated with Ares Management Corporation. The deal values Kodiak at $2.5 billion before the transaction and is expected to close in the second half of 2025. The transaction aims to take advantage of an estimated $4 trillion global opportunity in the autonomous trucking sector. Kodiak, founded in 2018, has pioneered the development of driverless semi-truck technology, including a notable partnership with Atlas Energy Solutions. The company earns recurring revenue through its Driver-as-a-Service model and has logged over 2.6 million autonomous miles. Ares Acquisition's CEO, David Kaplan, and COO, Allyson Satin, express confidence in Kodiak's industry-leading position and growth potential. Existing investors, including Soros Fund Management, ARK Investments, and Ares, have committed over $110 million to support the transaction. Upon closing, the combined company will be named Kodiak AI, Inc. Legal and financial advisors assisting with the transaction include Citigroup, J.P. Morgan, Kirkland & Ellis, Chardan, TD Cowen, and Wilson Sonsini Goodrich & Rosati.
Sectors
- Autonomous Vehicle Technology
- Special Purpose Acquisition Companies (SPACs)
- Commercial Trucking
Geography
- United States – Kodiak operates primarily in the U.S. Sunbelt region and the business operation details are given in the U.S context.
Industry
- Autonomous Vehicle Technology – The article focuses on Kodiak Robotics, which specializes in autonomous solutions for the transportation sector.
- Special Purpose Acquisition Companies (SPACs) – Ares Acquisition Corporation II is a SPAC facilitating Kodiak's transition to a publicly-traded company.
- Commercial Trucking – Kodiak's autonomous technology is directed at commercial trucking markets.
Financials
- $2.5 billion – Pre-money equity valuation of Kodiak Robotics.
- $551 million – Cash held in AACT's trust account expected to be received at closing.
- $110 million – Investments and commitments from institutional investors to support the transaction.
- $30 million – Contract value awarded to Kodiak by the U.S. Department of Defense.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Kodiak Robotics, Inc. | Target Company | Company | Kodiak is a leader in autonomous vehicle technology focused on commercial trucking. |
| Ares Acquisition Corporation II | Acquirer | Company | A SPAC formed by Ares Management Corporation for mergers and acquisitions. |
| Ares Management Corporation | PE Firm | Company | Parent company of Ares Acquisition Corporation II, providing financial and strategic support for the transaction. |
| Atlas Energy Solutions | Partner Company | Company | Partnered with Kodiak for driverless trucking operations in the Permian Basin. |
| Citigroup Global Markets Inc. | Capital Markets Advisor | Company | Serving as a capital markets advisor to Ares Acquisition Corporation II. |
| J.P. Morgan Securities LLC | Capital Markets Advisor | Company | Serving as a capital markets advisor to Ares Acquisition Corporation II. |
| Kirkland & Ellis LLP | Legal Advisor | Company | Providing legal advisory services to Ares Acquisition Corporation II. |
| ARK Investments | Investor | Company | Existing investor in Kodiak, supporting the transaction. |
| Soros Fund Management | Investor | Company | Institutional investor providing financial support for the business combination. |