Delphi tracks down Nutonomy for $450m

Nutonomy, a US-based self-driving technology producer spun out of Massachusetts Institute of Technology (MIT), yesterday agreed to an acquisition by automotive parts manufacturer Delphi Automotive for $450m.

Delphi will pay $400m upfront and earn-outs totalling approximately $50m. The deal is subject to customary closing conditions and is expected to close by the end of this year.

Founded in 2013, Nutonomy is working on software called NuCore that enables large fleets of autonomous, ride-hailing vehicles. The technology is currently being tested in cities such as Boston and Singapore.

NuCore is based on work by Karl Iagnemma, director of the Robotic Mobility Group and a principal research scientist in the Department of Mechanical Engineering at MIT, and Emilio Frazzoli, professor of aeronautics and astronautics with the Laboratory for Information and Decision Systems, and the Operations Research Center at MIT.

Following the acquisition, Nutonomy, which will continue to be based in Boston, plans on hiring more than 100 additional staff, including 70 engineers and scientists. The team will join forces with Delphi’s own autonomous driving division with more than 100 staff.

Delphi hopes the acquisition will help it access additional clients and enter more markets, as well as accelerate its pilot program to 60 autonomous cars on the road by the end of the year.

Nutonomy previously closed a $16m series A round in May 2016 led by Highland Capital Partners, with contributions from EDBI, the investment arm of Singapore government agency Economic Development Board, and Samsung Ventures, the corporate venturing unit of consumer electronics manufacturer Samsung.

Fontinalis Partners and Signal Ventures also participated in the series A round. Both VC firms had earlier taken part in a $3.6m seed round alongside Samsung Ventures and Steven LaValle in January 2016.

Karl Iagnemma, co-founder and chief executive of Nutonomy, said: “Our mission has always been to radically improve the safety, efficiency, and accessibility of transportation worldwide.

“Joining forces with Delphi brings us one step closer to achieving our goal with a market-leading partner whose vision directly aligns with ours. Together we will set the global standard for excellence in autonomous driving technology.”