Ouster: Priced For Death
- Ouster trades below $1 despite a building contract revenue opportunity and growing customer base.
- The company just released new Lidar sensors based on an advanced digital chip improving detection range, precision and accuracy.
- The stock trades at cash value despite a rapidly growing revenue base and being valued at 1.5x '23 sales targets.

- Velodyne (NASDAQ:VLDR) shares gained 5% Monday morning after the lidar solutions firm agreed to merge with fellow lidar tech firm Ouster (NYSE:OUST) in an all-stock deal.
- Under the terms of the deal, each Velodyne (VLDR) share will be exchanged for 0.8204 shares of Ouster (OUST) at closing. The transaction will result in existing Velodyne and Ouster shareholders each owning approximately 50% of the combined company, based on current shares outstanding.
- The combined company is expected to drive lidar adoption and result in a strong financial position, increased operational efficiencies, and a complementary customer base in fast-growing end-markets. The companies had a combined cash balance of ~$355M at Sep-end, and aim to realize annualized cost savings of at least $75M within nine months after deal closing.
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