8-KOther Events

Uber Technologies, Inc 8-K Report, Corporate Update (Jul 2, 2019)

Filed July 2, 2019For Securities:UBER

Summary

Uber Technologies, Inc. (UBER) announced on July 2, 2019, the consummation of a significant transaction involving its Advanced Technologies Group (ATG), which focuses on autonomous vehicle technologies. The company contributed its ATG subsidiaries and related assets/liabilities to a newly formed parent entity for ATG. This move effectively separated the ATG into a distinct business unit within Uber. Following the contribution, Uber secured a substantial investment of $1.0 billion from key strategic partners: SoftBank Vision Fund, Toyota Motor Corporation, and DENSO Corporation. These investments were made in exchange for preferred units, representing a 13.8% stake in ATG and valuing the unit at an implied $7.25 billion immediately post-investment. This capital infusion and strategic partnership are expected to accelerate the development and commercialization of Uber's self-driving technology.

Key Highlights

  • 1Uber has finalized the formation of a new corporate parent for its Advanced Technologies Group (ATG).
  • 2Strategic investors SoftBank Vision Fund, Toyota, and DENSO collectively invested $1.0 billion into ATG.
  • 3The investment values Uber's ATG at an implied $7.25 billion immediately after the transaction.
  • 4Toyota, SoftBank, and DENSO now collectively hold a 13.8% stake in ATG.
  • 5Uber retains an 86.2% stake in ATG on a fully diluted basis post-investment.
  • 6A joint collaboration agreement was entered into with Toyota, DENSO, and ATG to advance self-driving hardware and vehicle development.
  • 7Toyota committed to contribute up to an additional $300 million in cash over six semi-annual installments to fund ATG's collaborative activities.

Frequently Asked Questions

This transaction separates Uber's autonomous vehicle technology (ATG) into a distinct entity, allowing for more focused development and strategic partnerships. The substantial investment from SoftBank, Toyota, and DENSO, along with a collaboration agreement, provides significant capital and expertise to accelerate the progress of Uber's self-driving technology.

ATG received a total of $1.0 billion in investment. The investors are affiliates of SoftBank Vision Fund ($333 million), Toyota Motor Corporation ($400 million), and DENSO Corporation ($267 million).

The investment implies a valuation of $7.25 billion for Uber's Advanced Technologies Group (ATG) immediately following the closing of the investment by the ATG investors.

The ATG Collaboration Agreement, involving Toyota, DENSO, and ATG, aims to jointly develop next-generation self-driving hardware and vehicles. This agreement expands Uber's existing relationship with Toyota and brings DENSO into the development effort, with Toyota committing additional funding of up to $300 million.