Kodiak Robotics has entered into a definitive agreement to merge with Ares Acquisition Corporation II (AACT, Financial), facilitating its transformation into a publicly traded company. This strategic move is set to value Kodiak with a pre-money equity estimation of $2.5 billion. The merger is anticipated to inject approximately $551 million into the combined entity, derived from cash held in AACT’s trust account, assuming no existing shares are redeemed.
The transaction enjoys substantial backing, with over $110 million committed by notable institutional investors, including Soros Fund Management, ARK Investments, and Ares Management Corporation (ARES), which is affiliated with AACT. This financial support reinforces investor confidence in Kodiak's future growth prospects.
Both Kodiak and AACT's boards of directors have unanimously endorsed the merger, paving the way for its anticipated completion in the latter half of 2025. This timeline depends on securing approvals from both firms' stockholders and meeting customary closing conditions.
Following the merger's completion, the combined entity will be rebranded as Kodiak AI, Inc. Its common stock and public warrants are expected to be listed on a national stock exchange, trading under the symbols KDK and KDK WS, pending exchange approval.
