by Cromwell Schubarth
Silicon Valley Business Journal
General Motors has acquired a San Francisco startup that makes self-driving car kits in a deal that is reportedly worth more than $1 billion.
The auto giant didn't say how much it paid for San Francisco-based Cruise Automation, but Fortune cited an unnamed "source close to the situation" that said the deal is valued at “north of $1 billion,” in a combination of cash and stock.
The company is led by Kyle Vogt and offered a kit that could be used to convert Audi S4 and A4 models into autonomous vehicles.
"GM shares a common vision for the deployment of autonomous vehicles at a mass scale — a clear and vivid vision," Vogt told Business Insider. The company's 40 employees will remain in San Francisco, but Vogt said the team will now be aggressively expanded and join GM (NYSE: GM)'s newly formed autonomous-driving group.
"We’re here to win," GM President Dan Ammann said. "We’re super excited, and we have a very clear vision. We are very serious about leading, and we're committed to investment."
Cruise, which was in Y Combinator's Winter 2014 batch, had raised more than $18 million in venture funding from a collection of angel investors and venture funds including Spark Capital and Qualcomm Ventures. Y Combinator PresidentSam Altman led its Series A round in September when it was figured to be worth around $90 million.