General Motors Co. said Friday it has closed on its acquisition of Cruise Automation Inc., a Silicon Valley company developing autonomous-vehicle technology.
GM said in a statement additional details of the acquisition will be disclosed with the company’s second quarter financial results. The auto maker typically reports its second-quarter earnings in late July.
GM in March said it would acquire Cruise to accelerate its efforts to develop self-driving cars. The deal is valued at more than $1 billion, according to people familiar with the terms, and is a building block in the Detroit auto giant’s strategy to better compete with tech giants plowing further into the business --including Apple Inc., Uber Inc. and Alphabet Inc.’s Google car program.
Cruise software will be part of a coming self-driving taxi pilot run by GM and Lyft Inc., a ride-hailing service that competes with Uber. GM in January invested $500 million in Lyft, and recently acquired the assets of San Francisco ride-sharing firm Sidecar.
Friday’s disclosure that the Cruise deal is closed indicates GM is confident it can steer around a lawsuit filed last month against Cruise and its founder by Jeremy Guillory, an engineer who worked with the startup in its early days and was instrumental in attempts to gain early-stage funding.
Mr. Guillory didn't immediately respond to a request for comment. GM said it is not providing any details pertaining to the lawsuit.
Source : wsj.com