Ares Management (ARES) affiliate Kodiak Robotics will become a publicly-listed company through a business combination agreement it has signed with special purpose acquisition company Ares Acquisition (AACT), according to a Monday statement.

The proposed deal places a pre-money equity value of $2.5 billion on Kodiak, an autonomous driving company developing technology to address transportation challenges, Kodiak and Ares Acquisition said in the statement.

The combined company will be named Kodiak AI, whose common stock and public warrants are expected to be listed on a national stock exchange under the ticker symbols KDK and KDK WS, respectively, the companies said.

They said the combined company is expected to get about $551 million of cash held in Ares Acquisition's trust account at closing.

The companies added that certain institutional investors, including affiliates of Soros Fund Management, ARK Investments and Ares Management, have invested or committed more than $110 million to support the deal, which is expected to occur in H2.