Serve Robotics Acquires Diligent Robotics for $29 Million

Serve Robotics announced that it has entered into an agreement to acquire Diligent Robotics. Since its inception, Diligent has raised over $100M in financing from investors including Tiger Global, Canaan, and True Ventures. Diligent Robotics will continue its operations as a subsidiary of Serve under the leadership of Andrea Thomaz. Pursuant to the merger agreement, the aggregate transaction will consist of shares of the company's common stock with a value of $29M paid to Diligent shareholders, subject to net debt and other adjustments, including a potential earn-out of up to $5.3M upon the achievement of specified milestones. At the closing of the transaction, all Diligent options and Diligent warrants will be cancelled for no consideration. The transaction is expected to close in the first quarter of 2026. The merger agreement contains customary representations, warranties, covenants, and indemnification obligations of the parties thereto. The parties to the merger agreement also agreed to various customary covenants and agreements, including, among others, for Diligent to conduct, subject to certain exceptions, its business in the ordinary course consistent with past practice during the period between the execution of the merger agreement and the closing of the transactions contemplated by the merger agreement. The completion of the transaction is subject to the satisfaction of customary closing conditions, including, among other things, the absence of any governmental law or order that makes the transaction illegal or otherwise prohibits or prevents its consummation; the accuracy of the representations and warranties made by the parties to the merger agreement; the absence of a material adverse effect with respect to either the company or Diligent; and the authorization for listing of the common stock to be issued pursuant to the merger agreement on Nasdaq.