indie Semiconductor (Nasdaq: INDI), an automotive solutions innovator, today announced it has signed a definitive agreement to acquire emotion3D GmbH, a Vienna, Austria-based specialist developer of advanced perception algorithms and software for in-cabin sensing, advanced driver assistance systems (ADAS) and automated driving. According to McKinsey, automotive software will represent a $83 billion total market value in 2030 (automotive semiconductors will be $135 billion), with a 2019-2023 CAGR of greater than 9%. ADAS and automated driving software will comprise over 50 percent of this total, marking a significant incremental revenue opportunity for automotive semiconductors.
As global automotive regulation and new car assessment programs evolve to make driving and roads for all users safer, automakers are increasingly deploying multi-modal sensing, including cameras and radars, to address these growing safety requirements. The data generated by these sensors must be processed by software perception algorithms to interpret a vehicle's external and internal environmental context and classify and identify potential hazards for downstream safety actions such as driver and occupant warnings or automated braking.
emotion3D has developed an AI-based perception solution for embedded automotive vision and radar sensing, with proven deployments for in-cabin sensing applications such as driver and occupant monitoring (DMS/OMS) with top global Tier 1 system integrators and OEMs. Additionally, emotion3D's advanced perception solutions for external sensing applications such as nighttime forward vision and camera-radar sensor fusion are already in advanced development and customer testing. A key differentiator of emotion3D's machine learning-based approach is its robustness to varying customer use cases, achieved through a low compute multi-task neural network architecture in combination with extensive use of synthetic data and simulation during model development and testing. The company's strong in-house capabilities in synthetic data generation significantly reduce the need for real-world data, enabling faster and more cost-efficient development, reliable retraining of neural networks, and high flexibility in addressing custom requirements.
"Automakers are increasingly demanding co-optimized hardware-software solutions for ADAS applications," said Mark Tyndall, EVP of Corporate Development and IR at indie. "Already engaged with top global Tier 1 manufacturers and OEMs, emotion3D is supplying an innovative AI-based perception approach that is ideally suited to embedded ADAS sensing, extensible to vision, radar and sensor fusion applications. Supplying software alongside our chip offering will bring significant value-add to indie's vision and radar portfolio and high gross margin revenue, positioning indie to maximally benefit from the substantial ADAS market opportunity."
"We are incredibly excited to join forces with indie," said Dr. Florian Seitner, CEO and co-founder of emotion3D. "Our software technology is uniquely suited to indie's embedded vision and radar hardware solutions, and access to in-house silicon will help accelerate our ambitious multi-sensor roadmap. Our company's founding was based upon the global safety initiative Vision Zero, which aims to eliminate all traffic fatalities and severe injuries. The combination of our software and indie's hardware solutions will help us to take a step closer to this important long-term industry aspiration."
indie will pay $20 million in cash at closing, in addition to an aggregate of up to $10 million performance based earnouts that will be payable if certain revenue targets are exceeded over a post-closing period ending in February 2027. The closing is subject to customary closing conditions, including regulatory clearance. It is expected to occur in the fourth quarter of 2025, and be immediately accretive.
About indie
Headquartered in Aliso Viejo, CA, indie is empowering the automotive revolution with next generation semiconductors, photonics and software platforms. We focus on developing innovative, high-performance and energy-efficient mixed-signal SoCs and system solutions for ADAS systems in addition to adjacent industrial applications. Our sensors span all major modalities including Radar, LiDAR, Ultrasound, and Computer Vision, while our embedded system control, power management and interfacing solutions are accelerating the proliferation of automated vehicle safety features. As a global innovator, we are an approved vendor to Tier 1 partners and our solutions can be found in marquee automotive OEMs worldwide.
Please visit us at www.indie.inc to learn more.
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This communication contains "forward-looking statements" (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended). Such statements can be identified by words such as "will likely result," "expect," "anticipate," "estimate," "believe," "intend," "plan," "project," "outlook," "should," "could," "may" or words of similar meaning and include, but are not limited to, statements regarding the time to close the emotion3D acquisition (the "Acquisition"), statements regarding the benefits and synergies of the Acquisition, including, our ability to capitalize on revenue opportunity in the ADAS market, our belief that the Acquisition will bring significant value to our vision and radar portfolio and will accelerate emotion3D's multi-sensor roadmap, and our expectations regarding revenue and the profitability profile of such revenue from the Acquisition and that the financial impact of the Acquisition will be immediately accretive. Such forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results included in such forward-looking statements. In addition to the factors previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the SEC on March 3, 2025 and in our other public reports filed with the SEC (including those identified under "Risk Factors" therein), the following factors, among others, could cause actual results and the timing of events to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: macroeconomic conditions, including inflation, rising interest rates and volatility in the credit and financial markets, our reliance on contract manufacturing and outsourced supply chain and the availability of semiconductors and manufacturing capacity; competitive products and pricing pressures; our ability to win competitive bid selection processes and achieve additional design wins; the impact of recent acquisitions made and any other acquisitions we may make, including our ability to successfully integrate acquired businesses and risks that the anticipated benefits of any acquisitions may not be fully realized or take longer to realize than expected; our ability to develop, market and gain acceptance for new and enhanced products and expand into new technologies and markets; current and potential trade restrictions and trade tensions, including trade and tariff actions taken or proposed by the US government affecting the countries where we operate and political or economic instability in our target markets. All forward-looking statements in this press release are expressly qualified in their entirety by the foregoing cautionary statements.
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