Southfield-based Lear Corp. is acquiring Xevo Inc. in a deal that combines Xevo's connected car technology with Lear's expertise in electronic systems.
“Xevo’s user interface establishes a connected marketplace for consumers in their vehicles, unlocking previously unrealized value from vehicle data and opening up new revenue streams,” Lear CTO John Absmeier said in a statement
Seattle-based Xevo is a Tier 1 automotive software supplier that employs more than 300 people. Its technology is licensed in vehicle systems to several of the world's largest automotive manufacturers.
“This transaction is consistent with our stated capital allocation strategy,” Lear CEO Ray Scott said in a statement. “It allows us to enhance our capabilities in software, services, and data analytics and strengthen our market position in connectivity.”
Lear will acquire all the outstanding shares of Xevo for $320 million. The transaction, which is subject to regulatory approvals and other customary closing conditions and adjustments, is expected to close in the second quarter of 2019. Lear intends to fund the transaction through debt financing.
Xevo's technology is currently available in over 25 million vehicles located primarily in the U.S., with significant opportunity for expansion not only in North America, but also in Asia and Europe.
Lear's products are designed, engineered, and manufactured by a team of approximately 169,000 employees located in 39 countries.
Less than a month ago, Lear announced plans to invest in an Israeli-based venture capital fund managed by Maniv Mobility.
Related post: Detroit’s Chip McClure is a veteran of the automotive supply industry. We recently spoke with McClure about his efforts to prop up Tier 2 and Tier 3 automotive suppliers.
