Graf Industrial is in talks to merge with Baidu-backed Velodyne Lidar in a deal that would take public the maker of sensors used in self driving vehicles, according to Bloomberg sources "familiar with the matter".
Graf Industrial is working with an adviser to help raise funding for the potential transaction, the Bloomberg sources said.
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No deal had been reached and Graf Industrial could opt to pursue another target, one source said.
Representatives for Graf Industrial and Velodyne declined to comment to Bloomberg.
Velodyne creates radar-like systems for self-driving vehicles that use lasers to generate three-dimensional images of a surrounding environment. Its technology is used by carmakers including Mercedes-Benz and Ford, according to its website
Backers include Chinese internet search giant Baidu and Ford, which together invested US$150 in Velodyne in 2016.
Bloomberg said Graf Industrial, a special purpose acquisition company, or SPAC, raised US$225m in an initial public offering in 2018.
In April, the company said it was negotiating a combination with PureCycle Technologies, a polypropylene recycling company.
