Delphi Automotive PLC (NYSE: DLPH) announced that it has signed an agreement to acquire nuTonomy, Inc. for an upfront purchase price of $400 million and earn-outs totaling approximately $50 million. The transaction brings together the leading start-up and Tier 1 in autonomous driving (AD) and further accelerates Delphi's commercialization of AD and Automated Mobility on-Demand (AMoD) solutions for automakers and new mobility customers worldwide.
Founded in 2013 by Dr. Karl Iagnemma and Dr. Emilio Frazzoli and recently named a World Economic Forum Technology Pioneer, nuTonomy is developing a proprietary full-stack AD software solution for the global AMoD market. The company will add more than 100 employees, including 70 engineers and scientists, to Delphi's more than 100-member AD team, while increasing Delphi's access to new customers and markets in the emerging mobility space.
"We are delighted to welcome Karl, Emilio, and their talented team to Delphi," said Delphi's President and Chief Executive Officer, Kevin Clark. "The combination of the nuTonomy and Ottomatika AD teams, along with Delphi's industry-leading portfolio of perception systems and smart vehicle architecture solutions, further enhances our competitive position as the industry's most formidable provider of autonomous mobility solutions. This transaction is another example of our ongoing dedication to developing, implementing, and commercializing the highest performing and safest AD system available."
Upon completion of the transaction, Delphi will have AD operations in Boston, Pittsburgh, Singapore, Santa Monica, and Silicon Valley. nuTonomy will continue to be based in Boston, where both companies currently operate AMoD pilot programs. By combining efforts with nuTonomy in Boston, Singapore, and other pilot cities around the world, Delphi will have 60 autonomous cars on the road across three continents by year-end, with the goal to further accelerate global fleet expansion and technology development.
"Our mission has always been to radically improve the safety, efficiency, and accessibility of transportation worldwide," said nuTonomy co-founder and CEO, Karl Iagnemma. "Joining forces with Delphi brings us one step closer to achieving our goal with a market-leading partner whose vision directly aligns with ours. Together we will set the global standard for excellence in autonomous driving technology."
The acquisition of nuTonomy is the latest in a series of investments that Delphi has made to expand its leadership position in the new mobility space, including the acquisition of AD software developer Ottomatika and data service companies Control-Tec and Movimento.
The transaction is subject to customary closing conditions and is expected to close prior to year-end.
GCA Advisors, LLC and Goldman, Sachs & Co. are serving as financial advisors to Delphi Automotive PLC.
Delphi Automotive PLC is a high-technology company that integrates safer, greener and more connected solutions for the automotive and transportation sectors. Headquartered in Gillingham, U.K., Delphi operates technical centers, manufacturing sites and customer support services in 46 countries. Visit delphi.com <http://www.delphi.com/> . Delphi Automotive will become two new, standalone companies by March 2018. Aptiv (NYSE: APTV) will comprise the Electronics & Safety and Electrical/Electronic Architecture segments, focused on accelerating the commercialization of new mobility solutions by providing the vehicle 'brain' and the 'nervous system' to global automotive and new mobility customers. Delphi Technologies (NYSE: DLPH), the powertrain segment, will leverage leading technologies and software to enable next-generation advanced vehicle propulsion systems for global customers, taking advantage of the industry move to electrification.