Caterpillar has acquired the assets of Monarch Tractor, a startup known for developing self-driving electric tractors. The deal's financial terms were not disclosed. The acquisition allows Caterpillar to integrate Monarch's automation, electrification, and data technologies into its portfolio of construction and agricultural equipment.
The purchase follows significant operational and financial struggles at Monarch, which had raised over $250 million from investors. The startup recently laid off staff and was pivoting from manufacturing vehicles to licensing its technology after facing what it called "unforeseen challenges" in scaling its business. The move is seen as a strategic, and likely discounted, way for Caterpillar to acquire engineering talent and intellectual property in the growing field of vehicle autonomy.