- Seeing Machines Ltd. NPV (DI)
- 08 July 2024 09:44:54
Source: Sharecast
The AIM-traded firm said the strategic partnership with Valeo would see Valeo's extensive experience in high-quality cameras, processing units, software, and system integration enhance Seeing Machines' leadership in driver and occupant monitoring systems.
It said the effort would target the growing demand for advanced interior cabin experiences and adherence to stringent safety regulations worldwide, particularly in Europe and China.
The acquisition of Asaphus, previously owned by Valeo, would meanwhile provide Seeing Machines with unique intellectual property, a new office in Berlin, and significant advancements in AI and ML capabilities.
Asaphus was currently engaged in three ongoing automotive programs, two in Europe and one in China.
The acquisition would bolster Seeing Machines' feature roadmap, optimise development costs, and enhance engineering talent in Germany - a key market for the company's expanding customer base in Europe.
Seeing Machines said the transaction for Asaphus amounted to a fixed $6m, split into two main components.
An initial cash payment of $2m would be paid in two tranches - $1m on signing and another $1m on the first anniversary of the agreement.
The remaining $4m would be contingent on achieving certain business outcomes, with any unpaid portion due by the fifth anniversary.
In 2023, Asaphus reported a profit of €49,000.
Valeo would transfer its driver monitoring perception system software activity to Seeing Machines, enhancing the latter's core business with additional valuable intellectual property.
The acquisition was expected to be cash neutral for Seeing Machines in the short term, with a positive financial impact as service and revenue streams grow over time.
“With our shared culture of innovation, this collaboration will enable our team to continue to lead the interior sensing market as we complement our highly specialised skills and work with Valeo, a world leading automotive technology company, to deliver driver and occupant monitoring solutions to more automotive customers, globally,” said chief executive officer Paul McGlone.
“As regulations making driver monitoring systems mandatory across the EU come into effect this month, the market for enhanced safety and convenience solutions is expanding daily.
“Thanks to our proven, class-leading technology, we are very well placed to solidify our industry leadership position, supporting our customers in getting their programs successfully to production.”
At 0920 BST, shares in Seeing Machines were down 0.11% at 4.67p.
Reporting by Josh White for Sharecast.com.