Lear Corporation LEA announced its acquisition of Xevo Inc., an automotive software supplier crafting solutions for cars, clouds and mobile devices.
Lear will purchase all outstanding Xevo shares for $320 million funded through debt financing.
"This transaction is consistent with our stated capital allocation strategy,” Lear CEO Ray Scott siad in the press release. “It allows us to enhance our capabilities in software, services, and data analytics and strengthen our market position in connectivity.”
Why It’s Important
With Xevo, Lear also subsumes two major platforms. One is the Journeyware product suite, which integrates a cloud framework and interface using real-time data for drivers to engage with mobile apps and in-car content.
The second is Xevo Market, a commerce and service platform using OEM-branded apps to connect drivers with food, parking, gas, hotel and retail spots.
"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," Lear CTO John Absmeier said in a press release. "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 is installed in more than 25 million cars primarily in the U.S., and management targets expansion in Asia and Europe.
"Today, with Lear's reach, we can scale Xevo's innovative technology and business model to a global customer base,” Xevo CEO Dan Gittleman said in a statement.
Lear’s transaction is scheduled to close in the second quarter.
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