Xperi Inc. Announces Definitive Agreement to Sell its AutoSense and Imaging Business to Tobii AB
December 12 2023 - 6:15PM
Business Wire
Sale Streamlines Business and Enhances
Strategic Focus on Entertainment
Xperi Inc. (NYSE: XPER) (the “Company” or “Xperi”), an
entertainment technology company that invents, develops, and
delivers technologies that enable extraordinary experiences, today
announced it 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 installments 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.
About Xperi Inc.
Xperi invents, develops, and delivers technologies that enable
extraordinary experiences. Xperi technologies, delivered via its
brands and partnerships (DTS®, HD Radio™, TiVo®), and by its
startup, Perceive, and IMAX Enhanced, an IMAX and DTS partnership,
are integrated into billions of consumer devices and media
platforms worldwide, powering smart devices, connected cars and
entertainment experiences. Xperi has created a unified ecosystem
that reaches highly engaged consumers driving increased value for
partners and customers.
Xperi, DTS, HD Radio, Perceive, TiVo, and their respective logos
are trademarks or registered trademarks of affiliated companies and
partners of Xperi Inc. in the United States and other countries.
All other company, brand and product names may be trademarks or
registered trademarks of their respective companies.
Safe Harbor Statement
This press release contains “forward-looking statements” within
the meaning of the federal securities laws, including Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These forward-looking
statements are based on information available to the Company as of
the date hereof, as well as the Company’s current expectations,
assumptions, estimates and projections that involve risks and
uncertainties. In some cases, you can identify forward-looking
statements by the words “expect,” “anticipate,” “intend,” “plan,”
“believe,” “could,” “seek,” “see,” “will,” “may,” “would,” “might,”
“potentially,” “estimate,” “continue,” “expect,” “target,” similar
expressions or the negatives of these words or other comparable
terminology that convey uncertainty of future events or outcomes.
These statements involve risks, uncertainties and other factors
that may cause actual results, levels of activity, performance, or
achievements to be materially different from the information
expressed or implied by these forward-looking statements. These
risks, uncertainties and other factors are described under the
captions “Risk Factors” and “Management's Discussion and Analysis
of Financial Condition and Results of Operations” and elsewhere in
the documents we file with the Securities and Exchange Commission
from time to time. The Company does not assume any obligation to
publicly provide revisions or updates to any forward-looking
statements, whether as a result of new information, future
developments or otherwise, should circumstances change, except as
otherwise required by securities and other applicable laws.
XPER-C
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version on businesswire.com: https://www.businesswire.com/news/home/20231212488986/en/
Xperi Investor Contact: Mike Iburg VP, Investor Relations
+1 408-321-3827 ir@xperi.com
Media Contact: Amy Brennan Senior Director, Corporate
Communications +1 949-518-6846 amy.brennan@xperi.com
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