Delphi Automotive PLC (NYSE: DLPH) announced on Monday it has entered into an agreement to acquire nuTonomy Inc. Delphi will pay upfront $400 million and earn-outs totaling $50 million, for a total of $450 million.
The transaction is to accelerate Delphi’s commercialization of autonomous driving and Automated Mobility on-Demand (AMoD) solutions for auto manufacturers and a new market globally.
nuTonomy was founded in 2013 and is focused on autonomous driving software solutions. The company began to test its software on vehicles in 2016, but is still currently under research and development, but the company already has operations running in major cities such as Singapore.
"The combination of the nuTonomy and Ottomatika AD teams, along with Delphi's industry-leading portfolio of perception systems and smart vehicle architecture solutions, further enhances our competitive position as the industry's most formidable provider of autonomous mobility solutions. This transaction is another example of our ongoing dedication to developing, implementing, and commercializing the highest performing and safest AD system available." said Delphi's President and Chief Executive Officer, Kevin Clark.
Through the deal, nuTonomy will add more than add will more than 100 employees, including 70 engineers and scientists, to Delphi’s more than 100-member autonomous driving team. This will increase Delphi’s customer base and expand its market.
Although these two autonomous companies are the biggest in the market compared to Waymo or Uber, every company has one common goal: safety.
Safety has been a major concern for both the government and automotive manufacturers. Both believe that autonomous driving will significantly reduce the amount of fatal crashes. This has led companies to collaborate together to become the first to commercialize autonomous vehicles.
“Our mission has always been to radically improve the safety, efficiency, and accessibility of transportation worldwide," said nuTonomy co-founder and CEO, Karl Iagnemma.
Once the transaction is completed, Delphi will have self driving operations in major cities such as Boston, Pittsburgh, Singapore, Santa Monica, and Silicon Valley.
nuTonomy already had operations running in Boston, Singapore and few other cities, but now with the merger, this will expand both companies globally. Delphi aims to have 60 self driving vehicles on the road by the end the year.
The transaction is subject to close prior to year-end.