Ares Management Affiliate to Take Kodiak Robotics Public in $2.5 Billion SPAC Deal

03:16 PM EDT, 04/14/2025 (MT Newswires) -- An Ares Management ( ARES ) affiliate has agreed to merge with Kodiak Robotics to take the autonomous trucking company public in a deal that implies a roughly $2.5 billion pre-money equity valuation for Kodiak.

The deal with blank-check company Ares Acquisition Corp. II ( AACT ) is expected to close in the second half of this year, subject to shareholder approvals, the companies said Monday.

Kodiak generates recurring revenue through driverless operations in the Permian Basin and goods delivery across the US. The company said it is looking to drive growth with its go-to-market strategy that aims to address an estimated $4 trillion-plus "global opportunity," including nearly $1 trillion in the US.

The merged entity is expected receive about $551 million of cash held in Ares Acquisition's trust account at closing, assuming no redemptions of existing shares and based on trust value per share at the end of 2024. Certain institutional investors, including affiliates of Soros Fund Management, ARK Investments and Ares Management ( ARES ), have invested or committed more than $110 million to support the deal.

"We believe entering the public markets will accelerate our strategy to expand our existing partner relationships, provide our technology to a broader customer base, and deliver enhanced solutions across the commercial trucking and public sector industries," Kodiak Founder and Chief Executive Don Burnette said.

Kodiak said it received a firm commitment from Atlas Energy Solutions ( AESI ) last month for an initial order of 100 trucks. Under the two companies' partnership, Kodiak-powered driverless trucks have exceeded 750 hours of commercial driverless operations across the Permian Basin, according to the statement.

"We believe Kodiak's scalable technology, combined with its established network, position the company to meet the evolving and growing demands of its customers and communities," said Ares Acquisition Chief Operating Officer Allyson Satin, who is also a partner at Ares Management ( ARES ).

The combined company will be called Kodiak AI, with its common shares expected to be listed under the ticker symbol KDK on a US stock exchange.

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