The manufacturers of LiDAR sensors, Ouster and Velodyne Lidar (Velodyne), have announced the completion of their merger agreement. The combined entity will retain the Ouster name and will continue to trade on NYSE under the “OUST” ticker.

The merged entity will have more than 850 customers, a rich portfolio of products and patents, an expanded partner ecosystem and distribution channels, and roughly USD 315 million in cash on hand, as of December 2022.

Ouster’s chief executive officer (CEO), Angus Pacala, will head the new company, while Velodyne’s CEO, Ted Tewksbury, will chair its board of directors.

Analyst QuickTake: Ouster and Velodyne first announced the merger last November to accelerate LiDAR adoption and strengthen the combined entity's financial position. The closure of the deal today adds to recent consolidations in the LiDAR space. In October 2022, Velodyne acquired peer LiDAR maker Bluecity.ai to complement LiDAR development for smart city applications and Ouster acquired Sense Photonics in October 2021 to complement product development. Meanwhile, self-driving tech company, Aurora Innovation, which develops its own LiDAR, also acquired two LiDAR startups— Blackmore (May 2019) and OURS Technology (February 2021) to expedite its LiDAR development process.