Uber Technologies has finalized a deal to offload its self-driving unit Uber Advanced Technologies Group to Aurora Innovation.

What Happened: The combined company created by the merger of the two autonomous driving businesses is valued at close to $10 billion, according to TechCrunch. Instead of receiving a cash consideration for Uber ATG, the ride-sharing company will invest an additional $400 million in Aurora for a stake in the new company, the two companies revealed in a filing with the U.S. Securities and Exchange Commission.

Uber will individually hold 26% in Aurora, following the transaction. The aggregate stake of Uber, the Uber ATG investors, and employees on a fully diluted basis is estimated close to 40%.

Dara Khosrowshahi, CEO of Uber, will be appointed as a director on Aurora’s board.

Why Does It Matter: Reports of Uber’s plans to shed its self-driving business surfaced in mid-November when the ATG unit was valued close to $7.5 billion.

Aurora Innovation is backed by investors like venture capital firm Sequoia Capital, T. Rowe Price Group, and Amazon. Uber is backed by the Japanese conglomerate SoftBank Group’s Vision Fund and Toyota Motor Corporation.

With the merger deal in place, Aurora will gain access to Uber’s ride-sharing platform and its vast client base.

Price Action: UBER closed 1.93% lower on Monday at $53.80.

This story originally appeared on Benzinga.

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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