REG - Seeing Machines Ltd - Seeing Machines acquires Asaphus Vision GmbH

Seeing MachinesAnnouncement

08/07/2024 07:00

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RNS Number : 4658V  Seeing Machines Limited  08 July 2024

 

Seeing Machines Limited ("Seeing Machines" or the "Company")

 

 

8 July 2024

 

Seeing Machines acquires Asaphus Vision GmbH

 

Collaboration with French Tier 1 automotive supplier Valeo extending AI and ML
capability

 

Seeing Machines Limited (AIM: SEE, "Seeing Machines" or the "Company"), the
advanced computer vision technology company that designs AI-powered operator
monitoring systems to improve transport safety, has announced a strategic
collaboration with Valeo, a global leader in the automotive industry, along
with the acquisition of Asaphus Vision GmbH ("Asaphus"), a highly specialised
development group with leading Machine Learning (ML) and Artificial
Intelligence (AI) capability.

 

Highlights:

 

●    Valeo and Seeing Machines enter strategic collaboration to grow
market share in Automotive

●    Seeing Machines acquires Valeo owned German software company,
Asaphus

●    Acquisition of Asaphus provides Seeing Machines with unique IP, a
Berlin office and material boost in AI and Machine Learning capabilities

●    Asaphus currently engaged on three ongoing Automotive programs

●    Acquisition expected to be cash neutral on an operating basis

 

Valeo's market-leading scale, expertise in high-quality cameras and processing
units (hardware), software and system integration will complement Seeing
Machines' leadership in driver and occupant monitoring system technology.
Together, they will jointly pursue opportunities across the global automotive
industry to meet the growing demand for enhanced interior cabin experiences by
OEMs for their customers, alongside meeting important and expanding safety
regulations across the world, including existing ones in Europe and China.

 

Further, Valeo will transfer its driver monitoring perception system software
activity to Seeing Machines. This will primarily be facilitated by Seeing
Machines' acquisition of Asaphus, a Valeo owned German company based in
Berlin, dedicated to the development of driver and occupant monitoring
software.

 

The collaboration with Valeo and acquisition of Asaphus represents a highly
attractive opportunity to strengthen Seeing Machines' core business with the
attainment of highly valuable additional Intellectual Property.  Further, the
acquisition will add complementary skills that will accelerate the Company's
feature roadmap with advanced AI and ML capability, optimise development costs
and deliver enhanced engineering talent in Germany, an ideal location to
support Seeing Machines' growing customer base in Europe.

Marc Vrecko, CEO of Valeo Brain Division, commented: "We are delighted with
this collaboration with Seeing Machines. It is another demonstration of
Valeo's ability to build the ground for successful cooperation with core
technology companies. These last 5 years, with Asaphus, we have been able to
grow the company, develop their AI perception technologies and build a solid
position in interior monitoring systems. Combining their teams with Seeing
Machines, we will benefit from the best in class perception software to
integrate into our hardware and software architecture for driver and occupant
monitoring systems.  Together, we will be able to provide more competitive
solutions and strengthen our market position"

The transaction to acquire Asaphus is comprised of a fixed amount of US$6
million, payable in two components. The first component relates to a cash
payment of US$2 million, payable in two tranches, the first US$1 million on
signing and the next US$1 million on the first anniversary of the Agreement.
The remaining component of US$4 million is payable on meeting certain business
outcomes, the remaining unpaid portion of the USD 4 million, if any, will be
due on the fifth Anniversary. Asaphus generated a EUR 49,000 profit in 2023.

 

The acquisition of Asaphus' operating business, currently engaged on two
Automotive programs in Europe and one in China, is expected to have a cash
neutral impact on Seeing Machines in the short term, with a positive
contribution as services and other revenues grow over time.

 

Paul McGlone, CEO at Seeing Machines, commented: "With our shared culture of
innovation, this collaboration will enable our team to continue to lead the
interior sensing market as we complement our highly specialised skills and
work with Valeo, a world leading automotive technology company, to deliver
driver and occupant monitoring solutions to more automotive customers,
globally. As regulations making driver monitoring systems mandatory across the
EU come into effect this month, the market for enhanced safety and convenience
solutions is expanding daily. Thanks to our proven, class-leading technology,
we are very well placed to solidify our industry leadership position,
supporting our customers in getting their programs successfully to
production."

 

This announcement contains inside information under the UK Market Abuse
Regulation. The person responsible for arranging for the release of this
announcement on behalf of the Company is Paul McGlone, CEO.

 

Enquiries:

 Seeing Machines Limited                             +61 2 6103 4700
 Paul McGlone - CEO

 Sophie Nicoll - Corporate Communications

 Stifel Nicolaus Europe Limited (Nominated Adviser and Broker)                        +44 20 7710 7600
 Alex Price

 Fred Walsh

 Ben Good

 Dentons Global Advisors (Media Enquiries)           +44 20 7664 5095

 James Styles

 Jonathon Brill

Methuselah Tanyanyiwa

 seeingmachines@dentonsglobaladvisors.com
 (mailto:seeingmachines@dentonsglobaladvisors.com)

About Seeing Machines (AIM: SEE), a global company founded in 2000 and
headquartered in Australia, is an industry leader in vision-based monitoring
technology that enable machines to see, understand and assist people. Seeing
Machines is revolutionizing global transport safety. Its technology portfolio
of AI algorithms, embedded processing and optics, power products that need to
deliver reliable real-time understanding of vehicle operators. The technology
spans the critical measurement of where a driver is looking, through to
classification of their cognitive state as it applies to accident risk.
Reliable "driver state" measurement is the end-goal of Driver Monitoring
Systems (DMS) technology. Seeing Machines develops DMS technology to drive
safety for Automotive, Commercial Fleet, Off-road and Aviation. The company
has offices in Australia, USA, Europe and Asia, and supplies technology
solutions and services to industry leaders in each market vertical.

 

www.seeingmachines.com (http://www.seeingmachines.com)

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