Lear to buy vehicle software company Xevo for $320M
Lear Corp. said Tuesday it intends to acquire Xevo Inc., an automotive software supplier, for $320 million.
Seattle-based Xevo would expand the Southfield-based car-seating manufacturer's connectivity offerings and grow the company's share in the connectivity market. Lear's electronic-system products include wireless vehicle-access, cybersecurity and high-accuracy positioning.
The deal is subject to regulatory approvals and is expected to close in the second quarter of 2019. Lear said it intends to fund the transaction through debt financing.
Xevo's cloud-based software allows drivers to interact with in-car content and mobile applications, and connects them with food, fuel, parking, hotel and retail brands through in-vehicle touchscreens.
Xevo's technology is available in more than 25 million vehicles — mostly in the United States — and presents opportunities for expansion in North America as well as in Asia and Europe.
Last week, Ann Arbor-based Domino's Pizza Inc. said it had partnered with Xevo to allow customers to order from their cars, an option expected to be available in late 2019.