Business
Xperi to Sell its AutoSense and Imaging Business to Tobii AB
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Xperi has entered into a definitive agreement to sell its AutoSense in-cabin safety business and related imaging solutions to Tobii AB, an eye tracking and attention computing company based in Sweden listed on the Stockholm Nasdaq exchange.
Over the past year, with our strategic progress accelerating our independent media platforms in smart TV, connected car, and video over broadband, we have been evaluating ways to further streamline our business and focus our investments on entertainment markets where we are best positioned to generate the strongest returns. As such, we felt the time was right to exit the AutoSense and related imaging business,” said Jon Kirchner, chief executive officer of Xperi. “We are proud of the roughly 280 employees and the world class technology they built over the years and believe the business will thrive under Tobii’s leadership. We look forward to watching the AutoSense business grow as the market for advanced automotive safety technologies continues to evolve,” added Kirchner.
Sale proceeds of $42.7 million are comprised of a senior secured promissory note in the principal amount of approximately $27.7 million carrying a fixed rate of 8% interest to be repaid by Tobii in three annual instalments beginning in 2027, and an aggregate of $15 million in future cash payments scheduled to be received over four years beginning in 2028. In addition, there is potential incremental contingent cash consideration paid in 2031 directly tied to the success of Tobii’s in-cabin safety business over the next seven years.
The transaction is subject to customary closing conditions and is expected to close within 30 days. The estimated impact on 2024 revenue is approximately $30 million and the transaction is expected to be modestly accretive to Adjusted EBITDA upon closing. The Company expects to issue 2024 full-year guidance in February.
Centerview Partners LLC served as exclusive financial advisor for Xperi, and DLA Piper LLP acted as legal advisor.
