Transaction in brief
- Tobii acquires
FotoNation Ltd fromXperi Inc. (NYSE: XPER), which includesAutoSense , a business delivering Driver Monitoring System ("DMS") and Occupant Monitoring System ("OMS") solutions. - In addition to the automotive related technologies Tobii is also receiving technology and patents related to image processing and computer vision.
- The Transaction is of a transformational character for Tobii, with the creation of a new business segment named Tobii Autosense which features one of the strongest product offerings in the Automotive Interior Sensing market.
FotoNation Ltd has approximately 250 full-time employees.-
The Segment has a substantial set of design wins with seven vehicle OEMs across more than 100 models, of which six from
AutoSense and one from Tobii. These seven OEMs represent more than 15 percent of the global annual automobile production including a large Korean, a large premium German and a large Japanese car manufacturer. -
The Transaction is expected to be EBIT accretive in 2024 and deliver revenue of
SEK 180-220 million in 2024.SEK 30-50 million of the 2024 revenue is attributable to the Segment. -
The Segment is expected to generate around
SEK 500 million in revenue by 2028 and reach cash flow break-even in 2026. The larger volume of design wins is scheduled for start of production in 2025 and 2026. - Tobii expects to be able to extract material cost and scalability synergies throughout the Segment.
-
The consideration for 100 percent of the shares in
FotoNation Ltd on a cash- and debt-free basis amounts to a minimum ofUSD 45 million .- No upfront cash or share consideration.
-
Approximately
USD 30 million of the consideration will be structured as a promissory note at 8% interest. The promissory note and interest are paid in three annual installments starting in 2027. -
A future payment of
USD 15 million will be paid in four annual installments starting in 2028. - Additional earn outs can be paid in 2031 if the Segment meets certain volume and deployment targets.
- The Transaction is expected to close within 30 days and is subject to customary closing conditions.
-
To finance the operational expenses needed for the Segment in 2024 and 2025, Tobii intends raise
SEK 300 million through a rights issue during the first quarter of 2024. - Tobii intends to summon an Extraordinary General Meeting to resolve on the rights issue.
CEO comment
"Tobii's ambition is to be a long-term global leader in the Automotive Interior Sensing market. I am thrilled that with this acquisition we have accelerated this timeline significantly. The combination of
Background and reasons
Automotive Interior Sensing is a fast-growing industry that includes both DMS and OMS. This market is growing rapidly due to safety regulations mandating its use starting in
Tobii's mission is to improve the world with technology that understands human attention and intent, a new technology domain named attention computing. Automotive Interior Sensing, which will reduce the number of automotive injuries and fatalities, is a core part of Tobii's attention computing ambition. The technology capabilities required for Automotive Interior Sensing are valuable in other verticals where Tobii is active, including scientific research, personal computing and extended reality.
The acquisition brings together the capabilities of Tobii and
About the Transaction and financial guidance
The
The Q3 2023 LTM revenue for the acquired entities amounted to
The revenue for Tobii's new Segment is expected to generate
As a result of the Transaction,
New segment reporting and re-organization
As a result of the Transaction, Tobii will re-organize into three business segments; Products & Solutions, Integrations and
The Transaction will allow Tobii to extract synergies and be more efficient in the Segment. In addition, overall investments in the other two business segments will be reduced.
Consideration and Transaction structure
The consideration for 100 percent of the shares in
Conditions
The Transaction is expected to close within 30 days and is subject to customary closing conditions.
The rights issue
To finance the operational expenses needed for the Segment in 2024 and 2025, Tobii intends to conduct a
Extraordinary General Meeting
Tobii intends to summon an Extraordinary General Meeting to resolve on the rights issue. The notice for the Extraordinary General Meeting will be published separately at a later date.
Financial and legal advisors
Webcast conference call for investors, analysts and media today at
Tobii's CEO
Link to the webcast
Please make sure you are connected to the webcast by logging in and registering to the Microsoft Teams service a few minutes before the presentation begins. It will be possible to ask questions via the chat. If you wish to ask questions verbally, please contact investor relations. The presentation material and a recording of the webcast will be available at Tobii's website.
For more information, please contact:
Carolina Strömlid, Head of Investor Relations,
This information is information that
About Tobii
Tobii is the global leader in eye tracking and pioneer of attention computing. We are on a mission to improve the world with technology that understands human attention and intent. Creating tech for a better future, our technologies and solutions apply to areas such as behavioral studies and research, healthcare, education and training, gaming, extended reality, automotive, and many more. Tobii's eye tracking is used by thousands of enterprises, universities, and research institutes around the globe. Headquartered in
[1] Source: Custom Market Insights 2023.
https://news.cision.com/tobii-ab/r/tobii-acquires-autosense-from-xperi-accelerating-path-to-leadership-in-automotive-interior-sensing-w,c3891950
https://mb.cision.com/Main/2874/3891950/2489606.pdf
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