SAN LUIS OBISP, CALIF. — Xperi Inc., the technology company that is parent to HD Radio, DTS and TiVo, has entered into a definitive agreement to sell its AutoSense in-cabin safety business and related imaging products.
The buyer is Tobii AB, a publicly traded eye tracking and attention computing company based in Sweden. It is paying $42.7 million USD, and to make it happen presented with Xperi’s approval a promissory note valued at $27.7 million, carrying a fixed 8% interest rate.
Tobii will repay the promissory note in three annual installments — beginning in 2027.
In addition, there is potential incremental contingent cash consideration paid in 2031 directly tied to the performance of Tobii’s in-cabin safety business over the next seven years.
Xperi CEO Jon Kirchner explained why Xperi decided to spin AutoSense. “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.”
Some 280 employees are associated with AutoSense business.
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.
Xperi Corp. 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.
