US-based 3D mapping technology developer Velodyne Lidar has hired banks for an initial public offering that would supply exits to carmaker Ford and internet group Baidu, Business Insider has reported.
Velodyne Lidar was spun off from audio equipment producer Velodyne Acoustics in 2016 to market light, detection and ranging (lidar) technology the latter had begun developing in 2005.
The company produces lidar sensors that facilitate autonomous driving functionality as well as driver assistance software called Vella. The technology also has applications in industrial settings, such as crane steering, container handling and port terminal security monitoring.
Bank of America Merrill Lynch, Citigroup, Royal Bank of Canada and William Blair are set to handle the proposed flotation, according to people familiar with the matter.
The flotation is expected to occur by the end of 2019, and to value Velodyne at more than $1.8bn, the valuation at which it last raised funding.
Velodyne Lidar received $25m in funding from imaging equipment producer Nikon in December 2018. Ford and Baidu had supplied $150m in equity financing for the company two years earlier to support its emergence from Velodyne Acoustics.
Velodyne Acoustics, which was founded in 1983, continues to sell audio gear, with a focus on subwoofers. It spun out a marine technology developer called Velodyne Marine which has created an automated system for stabilising boats, in 2011.
