© ljupco smokovski dreamstime.com General | April 03, 2019
Lear buying automotive software supplier Xevo
Lear Corporation, a global automotive technology manufacturer of seating and electrical and electronic systems, has announced plans to buy Seattle-based Xevo Inc., a connected car software supplier that develops solutions for cloud, car, and mobile devices.
In a company press release, Lear stated that it will acquire all outstanding shares of Xevo for USD 320 million. The transaction is expected to close in the second quarter of 2019 and Lear intends to fund the transaction through a debt financing. Xevo's technology is available in more than 25 million vehicles located primarily in the U.S., and shows significant opportunity for expansion in North America, Asia, and Europe. The company’s 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. Ann Arbor-based Domino's Pizza Inc. announced recently that is was partnering with Xevo to give customers the ability to order from their vehicles, as soon as later this year. Lear CTO John Absmeier said, "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. 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." Headquartered in Southfield, Michigan, Lear employs 169,000 people across 39 countries.