Kirkland & Ellis Advises Ares Acquisition Corporation II on $2.5 Billion Business Combination with Kodiak Robotics.
Kirkland & Ellis LLP has advised Ares Acquisition Corporation II (AACT) in a landmark business combination with Kodiak, a trailblazer in . The deal values Kodiak at a pre-money equity valuation of $2.5 billion and marks a major step in the company’AI-powered autonomous vehicle technologys journey toward reshaping the future of the trucking industry.
Upon closing, the combined company is expected to receive approximately $551 million in cash from AACT’s trust account, assuming no redemptions, based on the trust’s value as of December 31, 2024.
In addition, institutional investors including Soros Fund Management, ARK Investments, and Ares Management affiliates, have committed over $110 million in support of the transaction.
The Kirkland team guiding AACT includes corporate partners Monica Shilling and Walton Dumas, and capital markets partners Pippa Bond and Van Whiting.
“This is a remarkable milestone for the Kodiak team and reinforces our confidence in the significant value proposition we see in our differentiated driverless technology. 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.
Further, with Kodiak's disciplined approach to capital management, along with strategic and financial support from Ares, we believe we are well-positioned to execute on our long-term growth plans. On behalf of the entire Kodiak team, we are thrilled to be working with Ares and AACT as we continue to drive our mission to create a safer and more efficient future for the trucking industry.” said Don Burnette, Founder and CEO of Kodiak.
David Kaplan, CEO and Co-Chairman of AACT and Co-Founder of Ares, praised Kodiak’s innovation:
“As an early-mover in autonomous trucking and first to deliver a commercial driverless product to a customer, Kodiak has quickly set itself apart as an industry leader in a significant addressable market. We are excited to partner with Don and the Kodiak team as they seek to further capitalize on significant industry tailwinds and deliver value for their stakeholders."
Allyson Satin, COO of AACT and Partner at Ares, echoed the sentiment:
“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. We look forward to lending Ares' decades of experience investing and navigating through dynamic market environments in support of Kodiak's long-term goals."
Kodiak Robotics is a leading autonomous trucking company founded in 2018 by self-driving pioneer Don Burnette. Headquartered in Mountain View, California, with operations in Texas, Kodiak develops cutting-edge AI technology to make long-haul trucking safer and more efficient. Its core product, the Kodiak Driver, has completed millions of autonomous miles and thousands of commercial deliveries. The company also partners with the U.S. Department of Defense to adapt its tech for military use, underscoring its leadership in both commercial and government applications.
Ares Management Corporation is a leading global alternative investment manager, offering a broad range of investment solutions across credit, private equity, real estate, and infrastructure. Founded in 1997 and headquartered in Los Angeles, Ares operates in North America, Europe, Asia Pacific, and the Middle East, with over 3,200 employees worldwide. As of December 31, 2024, the firm managed approximately $477 billion in assets under management. Renowned for its disciplined investment approach and commitment to driving positive change, Ares integrates ESG, diversity, and philanthropy into its business practices, positioning itself as a trusted partner for institutional and private investors worldwide.
Kirkland & Ellis is a leading global law firm known for its excellence in M&A, corporate law, litigation, intellectual property, and private equity. With offices in key financial centers worldwide, the firm advises clients across a broad range of industries. Recognized for its work on high-stakes transactions and disputes, Kirkland delivers innovative legal strategies backed by deep industry knowledge. Its focus on complex deals and cutting-edge solutions positions it as a trusted advisor in the global legal market.
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