Lear Corporation to acquire Xevo for US$320mn
Michigan-based automotive tech leader, Lear, has announced that it is set to acquire Seattle-based Xevo, an automotive software supplier, in a deal worth US$320mn.
Xevo’s cloud-based Journeyware product suite enables drivers to interact with in-car content and mobile apps using real-time data, connecting them to nearby services through touch-screen interfaces.
The firm’s technology is already available in over 25mn vehicles, largely in the US, with Lear noting the potential for expansion in Europe and Asia.
“Automakers have embraced the potential of Xevo's e-commerce platform, as well as the deeply customizable driver experiences made possible by Xevo's artificial intelligence technology," said Dan Gittleman, CEO of Xevo, in Lear’s press release.
"Today, with Lear's reach, we can scale Xevo's innovative technology and business model to a global customer base."
"With the acquisition of Xevo, Lear advances its leadership position in the global trends reshaping the automotive industry," said Ray Scott, Lear Corp’s CEO.
"This transaction is consistent with our stated capital allocation strategy.
“It allows us to enhance our capabilities in software, services, and data analytics and strengthen our market position in connectivity. Xevo's world-class team will bring an invaluable pool of experience and expertise to our organization, and I am delighted to welcome them to the Lear family."
The $320mn acquisition of Xevo’s outstanding shares in full is set to close in Q2 2019, with Lear intending to fund the transaction through debt financing.