UK-based auto-spare parts supplier Delphi Automotive has agreed to acquire self-driving car startup nuTonomy for $450m.
The deal includes an upfront price of $400m and an earn-out of $50m.
nuTonomy was founded in 2013 by Karl Iagnemma and Emilio Frazzoli and is claimed to have developed a full-stack of software for the self-driving market.
With the transaction, more than 100 employees from nuTonomy will now join Delphi’s team.
The acquisition will help Delphi expand its presence in the US through nuTonomy’s headquarters in Boston and will also operate from Pittsburgh, Singapore, Santa Monica, and Silicon Valley.
Delphi president and CEO Kevin Clark said: "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."
The acquisition is expected to be completed by the end of this year and is subject to customary closing conditions. After the deal is completed, Delphi plans to deploy around 60 autonomous vehicles on the road across three continents, with the goal to speed its global fleet.
nuTonomy co-founder and CEO Karl Iagnemma said: "Our mission has always been to radically improve the safety, efficiency, and accessibility of transportation worldwide.
"Joining forces with Delphi brings us one step closer to achieving our goal with a market-leading partner whose vision directly aligns with ours. Together we will set the global standard for excellence in autonomous driving technology."
