Xevo to be Acquired by Lear Corporation
Xevo Inc., a leading automotive software supplier that develops solutions for cloud, car, and mobile devices, today announced it has entered into a definitive agreement to be acquired by Lear Corporation (NYSE: LEA), a global automotive technology leader in seating and electrical and electronic systems.
Xevo’s Journeyware suite of products combines a user-friendly interface with a cloud-based framework that allow drivers to seamlessly interact with in-car content and mobile applications utilizing real-time data. Xevo Market, an automotive commerce and services platform, connects consumers with popular food, fuel, parking, hotel, and retail brands through in-vehicle touchscreens and OEM-branded mobile applications.
“The acquisition of Xevo broadens Lear’s connectivity portfolio, bringing together Xevo’s leading e-commerce vehicle platform technology with Lear’s expertise in electronic systems,” said John Absmeier, Lear’s Chief Technology Officer. “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.”
Xevo’s connected car 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.
“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, Xevo’s Chief Executive Officer. “Today, with Lear’s reach, we can scale Xevo’s innovative technology and business model to a global customer base.”
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 a debt financing.
“With the acquisition of Xevo, Lear advances its leadership position in the global trends reshaping the automotive industry,” said Ray Scott, Lear’s Chief Executive Officer. “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.”
Evercore is serving as exclusive financial advisor to Xevo in this transaction.
