Automotive giant Lear to acquire Seattle-area connected car startup Xevo for $320M

Automotive giant Lear to acquire Seattle-area connected car startup Xevo for $320M

1:25pm, 2nd April, 2019
(Xevo Photo) Global automotive giant today that it will acquire Seattle-area connected car startup for $320 million. Xevo, originally founded in 2000 as UIEvolution, develops connected-car software with more than 25 million vehicles on the road today using its proprietary technology. It sells two products, Xevo Journeyware and Xevo Market, that allow drivers to interact with in-car content and connects them with popular food, fuel, parking, hotel, and retail brands via touchscreen and mobile apps. The company, which a partnership with Domino’s Pizza last month, employs 300 across offices in Bellevue, Wash., and Tokyo. The deal is expected to close in the second quarter. “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,” Xevo CEO Dan Gittleman said in a statement. “Today, with Lear’s reach, we can scale Xevo’s innovative technology and business model to a global customer base.” Lear, based in Southfield, Mich., specializes in automotive seating and electrical systems and employs nearly 170,000 people across 39 countries. It $21.1 billion in sales last year, up from $20.5 billion in 2017. The company’s stock reached record-highs in mid-2018 but has dropped 30 percent since then, trading at $141 per share on Tuesday. “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 was founded in 2000 by , who is known as the architect behind Microsoft products like Windows 95 and Internet Explorer 3. It in 2016 after the company acquired Seattle-based machine learning startup Surround.io Corp.
Toyota invests in $15M round for Airbiquity, a 22-year-old connected car startup in Seattle

Toyota invests in $15M round for Airbiquity, a 22-year-old connected car startup in Seattle

6:54pm, 11th March, 2019
A Toyota concept car at CES 2017. (GeekWire File Photo) Since first launched in 1997, a lot has changed in the automotive world. The Seattle-based company has not only remained relevant but is now attracting investor attention from one of the world’s largest car companies. Airbiquity today announced a $15 million investment round from Toyota Motor Corporation, Toyota Tsusho Corporation (Toyota’s trading arm), and DENSO Corporation (a giant automotive parts manufacturer partly owned by Toyota). Airbiquity has been building automotive telematics technology for more than two decades. Its focus is now on Choreo, a cloud-based connected car delivery platform, and , software that lets car manufacturers continuously update in-car software technology. (Airbiquity Photo) The company supports more than eight million vehicles across more than 60 countries and 30 languages. “We are delighted to receive investment from three of the most successful corporations in the automotive industry,” , the Airbiquity CEO who joined the company in 2002, said in a statement. “This is an exciting time for our company, and we look forward to working with our new strategic partners to optimize and leverage OTAmatic for the next generation of connected vehicle.” Investment in self-driving cars and related technology could help boost Airbiquity’s value proposition. Toyota itself has been over the past several years. The market for advanced driver-assistance systems technology could reach $35 billion by 2021, according to .