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GM Completes Full Acquisition of Cruise to Focus on Autonomous Personal Vehicles

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General Motors (GM) announced on Tuesday that it has completed the full acquisition of its Cruise division, signaling a shift in focus toward developing autonomous technology for personal vehicles, rather than continuing with the robotaxi business. This strategic move comes after GM decided in December to halt funding for Cruise’s robotaxi operations, following a series of challenges including a pedestrian injury caused by one of its robotaxis.

GM plans to integrate Cruise’s autonomous technology into its Super Cruise system, which allows hands-free driving on 750,000 miles of North American roads. Super Cruise is already available on over 20 GM vehicle models, and the company aims to expand its use in urban environments. The merger also involves significant staff reductions, with Cruise cutting around 50% of its workforce, impacting nearly 1,000 employees according to sources close to the matter.

The goal of the acquisition is to accelerate the development of autonomy at scale for personal vehicles, rather than robotaxis. GM believes that this merger will help advance both assisted driving and full autonomy. The company has forecasted that Super Cruise will generate approximately $2 billion in annual revenue within the next five years.

Dave Richardson, senior vice president of software and services engineering at GM, expressed that this move will speed up efforts to bring autonomous driving capabilities to personal vehicles. The transition marks a pivotal moment for GM, as it shifts its focus toward achieving greater success with its hands-free driving technology.

 

US DOJ Sues to Block Hewlett Packard Enterprise’s $14 Billion Juniper Deal

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The U.S. Department of Justice (DOJ) has filed a lawsuit to block Hewlett Packard Enterprise’s (HPE) $14 billion acquisition of Juniper Networks, arguing that the deal would reduce competition in the networking equipment market. According to the complaint, the merger would result in just two companies—HPE and Cisco Systems—controlling more than 70% of the U.S. market for networking gear.

Shares of both HPE and Juniper Networks fell by about 2% following the announcement. This antitrust lawsuit is the first to be filed under the current administration.

In response, the companies argue that the deal will not harm competition, claiming that it would bring together two complementary networking solutions that can better compete with established global players. They also pointed to Juniper’s innovations, which have driven HPE to lower its prices and invest more in innovation.

The DOJ’s complaint specifically noted that Juniper’s competitive pressures have forced HPE to offer discounts and develop new features to maintain market relevance. The companies are prepared to defend the merger in court, with pretrial and trial proceedings expected to take place over the next eight months, before the deal’s walk-away date in October.

While the DOJ moves forward with its challenge, both the UK’s Competition and Markets Authority and the European Union have already approved the acquisition.

 

NEC Considers Bid for Software Provider CSG Systems, Sources Reveal

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Japanese technology giant NEC Corp is exploring the possibility of acquiring CSG Systems, a U.S.-based software provider specializing in customer care and billing solutions for telecommunications companies. NEC has been in discussions with its advisers, including investment bankers at Morgan Stanley, about a potential offer for CSG, according to sources familiar with the matter. These sources, who requested anonymity due to the confidential nature of the talks, noted that the discussions are still in the early stages and there is no certainty a deal will proceed. Additionally, another bidder could emerge, or NEC might ultimately decide not to pursue the acquisition.

CSG, which is based in Englewood, Colorado, offers software and business services to telecom providers globally, focusing on areas like revenue management, customer experience, and payments. Its clientele includes major companies such as Comcast, Charter Communications, and Dish TV. News of the potential acquisition discussions led to a 14% jump in CSG’s stock price, bringing it to a 52-week high before some of those gains were pared back.

NEC and CSG both declined to comment on the reports, and Morgan Stanley did not respond to requests for comment. Despite facing challenges in maintaining market share, CSG reported a 3% increase in revenue for its most recent quarter, which reached $295.1 million, largely driven by strong performance in its customer experience and payments segments. CSG’s largest customer, Comcast, which accounts for 20% of its revenue, extended its contract with the company recently.

CSG has been under pressure as telecom giants aim to cut costs while focusing heavily on infrastructure investments for 5G deployment. Additionally, CSG’s chairman, Ron Cooper, announced that he will step down in May, with Marwan Fawaz, a seasoned technology executive, set to succeed him.

Founded in 1899, NEC has transitioned its focus from being the world’s largest semiconductor manufacturer to concentrating on IT services, cloud computing, artificial intelligence, and telecommunications equipment. The company currently has a market value of 3.67 trillion yen ($23.62 billion).