Luminar Technologies announced that it has agreed to sell its lidar business to Quantum Computing Inc. for a total consideration of $22 million. The sale is subject to approval by the U.S. Bankruptcy Court for the Southern District of Texas and to a court‑supervised auction process that concluded with a bid deadline of 5:00 p.m. Central Time on January 9 2026.
The transaction follows a prior agreement, signed on December 30 2025, in which Luminar’s semiconductor subsidiary, Luminar Semiconductor, Inc. (LSI), was sold to the same buyer for $110 million. Together, the two sales represent a near‑complete divestiture of Luminar’s operating assets and a significant reduction in its balance sheet as the company continues to restructure under Chapter 11, which it filed for on December 15 2025.
The lidar business, which had generated $18.7 million in revenue and a net loss of $89.5 million in Q3 2025, is being sold at a price that reflects the company’s distressed valuation. Management explained that the sale is intended to maximize value for stakeholders while allowing Quantum to acquire a technology platform that can be integrated into its broader portfolio. CEO Paul Ricci said the company’s “legacy debt obligations and the pace of industry adoption have challenged our ability to operate the business in a sustainable way.”
The sale is part of a broader strategy to address the loss of a major contract with Volvo, which terminated its agreement for the EX90 and ES90 vehicles after Luminar failed to meet supply commitments. The Volvo dispute has been a key driver of Luminar’s financial distress, contributing to the company’s $488 million funded debt as of December 2025 and the need to raise liquidity through asset sales.
Market reaction to the announcement has been negative, reflecting the company’s deteriorating fundamentals. Investors have focused on the sharp decline in revenue, the loss of a flagship customer, and the continued debt burden. The $22 million sale price, far below the company’s historical valuation, signals a significant erosion of shareholder value and underscores the challenges of scaling lidar technology in a competitive market.
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