indie Semiconductor to acquire emotion3D in $20 million deal
indie Semiconductor has agreed to acquire emotion3D GmbH, an Austrian developer of perception algorithms and software for in-cabin sensing, advanced driver assistance systems (ADAS), and automated driving, the companies announced.
Under the terms of the deal, indie will pay USD 20 million in cash at closing. An additional performance-based earnout of up to USD 10 million will be payable if certain revenue targets are met by February 2027. The transaction is subject to regulatory clearance and other customary conditions, with closing expected in the fourth quarter of 2025, indie states in a press release.
Founded in Vienna, emotion3D develops AI-based software that processes data from vehicle cameras and radars to monitor drivers and occupants, detect hazards, and assist in automated driving functions. The company works with Tier 1 system integrators and OEMs. Its technology is used in driver and occupant monitoring systems (DMS/OMS) and is in advanced testing for external sensing applications such as nighttime vision and sensor fusion.
According to McKinsey, automotive software will represent a USD 83 billion total market value in 2030 (automotive semiconductors will be USD 135 billion), with a 2019-2023 CAGR of greater than 9%. ADAS and automated driving software will comprise over 50% of this total, marking a significant incremental revenue opportunity for automotive semiconductors.
“Automakers are increasingly demanding co-optimized hardware-software solutions for ADAS applications,” said Mark Tyndall, EVP of Corporate Development and IR at indie, in a press release. “Already engaged with top global Tier 1 manufacturers and OEMs, emotion3D is supplying an innovative AI-based perception approach that is ideally suited to embedded ADAS sensing, extensible to vision, radar and sensor fusion applications. Supplying software alongside our chip offering will bring significant value-add to indie’s vision and radar portfolio and high gross margin revenue, positioning indie to maximally benefit from the substantial ADAS market opportunity.”