Luminar moves to sell lidar business for $22 million

Luminar has entered into an agreement to sell its lidar business to Quantum Computing Inc. for $22 million. Under the terms of the deal, the buyer is designated as a stalking horse bidder—a company designated to make the first bid on a bankrupt company’s assets to set a baseline. The transaction is part of the lidar-maker’s restructuring process, after Luminar filed for Chapter 11 bankruptcy protection in December. The bankruptcy proceedings are being handled by the bankruptcy court in the Southern District of Texas, and the deal remains open to higher offers until 5:00 p.m. CT on Monday.

The proposed transaction highlights a steep decline in valuation for the company. To illustrate the scale of the collapse:

• Peak market cap (2021): Around $11 billion, driven by expectations of supplying 1 million lidar sensors to partners like Volvo.
• Semiconductor subsidiary sale: Luminar plans to sell this unit to Quantum Computing Inc. for $110 million.
• Lidar business sale: The current stalking horse bid stands at $22 million.

The valuation drop followed the loss of major automotive partnerships. Volvo walked away from its deal in 2025, and other agreements with Mercedes-Benz and Polestar also fell apart.

The asset sale faces potential complications from Luminar’s founder and former CEO, Austin Russell. Russell has signaled interest in submitting a bid for the lidar assets, having previously tried to buy the entire company in October before the bankruptcy filing. Meanwhile, Luminar is currently trying to serve Russell with a subpoena for information stored on his cell phone. The company is evaluating whether to pursue legal claims against him related to the board-run ethics inquiry that led to his resignation last May.

The stalking horse bidder, Quantum Computing Inc., has undergone several structural shifts since its founding in 2001 as an ink-jet cartridge seller. The company bought a beverage company in 2007, underwent a restructuring 10 years later, and eventually pivoted to optical technology. Although Quantum Computing Inc. raised more than $700 million by selling shares in 2025, its financial footprint remains small: the company’s revenue for the first nine months of last year was $384,000.

Why it matters

Luminar’s sale of its lidar business for $22 million represents a significant decline from its 2021 peak market cap of around $11 billion, following the loss of major automotive partnerships.