Lear Corp., a Southfield-based automotive seating and electrical and electronic systems supplier, said Monday it plans to acquire Seattle’s Xevo Inc., an automotive software supplier that develops solutions for cloud, car, and mobile devices, for $320 million.
Xevo’s Journeyware suite of products, which will expand Lear’s connectivity offerings, 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,” says John Absmeier, chief technology officer at Lear. “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 technology currently is available in more than 25 million vehicles located primarily in the U.S., with 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,” says Dan Gittleman, CEO at Xevo. “Today, with Lear’s reach, we can scale Xevo’s innovative technology and business model to a global customer base.”
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.
“With the acquisition of Xevo, Lear advances its leadership position in the global trends reshaping the automotive industry,” says Ray Scott, CEO of Lear. “It allows us to enhance our capabilities in software, services, and data analytics and strengthen our market position in connectivity.”