Ouster Acquires StereoLabs for $35M in Cash and Stock as Sensor Industry Consolidation Accelerates

Lidar manufacturer Ouster has acquired StereoLabs, a provider of vision-based perception systems for robotics and industrial applications, in a deal valued at $35 million cash plus 1.8 million shares. This transaction represents the latest move in an ongoing consolidation trend within the perception sensor supply chain.

The acquisition follows a series of strategic M&A activities in the sector. Last month, MicroVision acquired the lidar assets of the now-bankrupt Luminar for $33 million. Ouster itself has been an active participant in industry consolidation, having merged with competitor Velodyne in 2022 and acquired lidar startup Sense Photonics in 2021.

This wave of consolidation coincides with increased investor interest in "physical AI" — an umbrella term encompassing humanoid robotics, autonomous drones, self-driving vehicles, and warehouse automation systems. The sector has witnessed substantial capital inflows, with even niche component suppliers securing significant funding rounds as these technologies mature. Some startups are developing entirely novel sensor modalities to address market demands.

Ouster cofounder and CEO Angus Pacala stated that he had been monitoring StereoLabs for several years. While positioning lidar as "the core component of safety-critical, capable systems," Pacala emphasized his strategic objective to "move up the stack" by integrating camera technology as a complementary sensor modality.

Pacala characterized 15-year-old StereoLabs as "best in class" on the hardware front, particularly praising the company's sophisticated implementation of cutting-edge AI models and edge computing capabilities. He specifically highlighted StereoLabs' development of a foundational AI model for depth estimation from stereo camera systems.

"It was a no brainer for us to go out and approach them and basically pitch this vision of working with us to become a unified sensing and perception platform — a tier one supplier for these advanced physical AI systems," Pacala explained.

Despite the integration strategy, StereoLabs will operate as a wholly-owned subsidiary of Ouster, maintaining some operational independence.

Notably, Pacala offered a measured perspective on the current physical AI hype cycle, cautioning against inflated expectations. "The business model here is not to just sell the fervor, it's to actually make working systems that are certified, that are safe, that are really solving customer problems," he stated. "There's going to be a little bit of disillusionment in physical AI as it turns out that it's much longer time to market for all these humanoids."

This realistic assessment is shared by other industry leaders. MicroVision CEO Glen DeVos recently indicated that the sensor industry is "ripe for consolidation" due to insufficient revenue to sustain current competitive levels. "You're going to get consolidation, or you're going to get kind of a weeding out of the industry as people fall to the wayside," DeVos predicted.

Key transaction details:
• Acquisition price: $35 million cash + 1.8 million Ouster shares
• StereoLabs will operate as wholly-owned subsidiary
• Strategic focus: unified sensing and perception platform
• Target markets: robotics, industrial automation, autonomous systems

Official Announcement - Business Wire