Automotive software firm TTTech Auto raises $285 million investment from Aptiv and Audi
TTTech Auto, an Austrian automotive safety technology startup, raised $285 million (€250 million) from Aptiv and Audi in its latest funding round.
Aptiv is investing $228 million (€200 million), while Audi is increasing its existing stake by $57 million (€50 million).
With this latest funding round and a valuation of over $1 billion, TTTech Auto confirms its strong position among a growing number of automotive tech unicorns. The transaction is subject to regulatory approval and is expected to close within the next two months.
With Aptiv, another highly successful and significant technology leader is part of TTTech Auto’s blue chip shareholder base alongside Audi, Samsung Electronics, Infineon Technologies and the founder-led TTTech Group.
This underscores the company’s strong position with its security software platforms in the emerging automotive software-defined mobility space and the value it brings to the market.
This investment will enable TTTech Auto to accelerate progress in three strategic areas: expanding its product portfolio for automakers and technology partners, expanding internationally in key regions, and expanding capabilities through mergers and strategic acquisitions and product investments.
Expanded Product Portfolio: TTTech Auto will apply the new funding to its flagship product, the MotionWise safety software platform, to help automakers shorten development cycles for software-defined cars, while ensuring safety across the board. car functions.
To date, approximately two million vehicles are already driving safely thanks to MotionWise. The security platform will be delivered as an open, modular and standards-based platform.
Specific tools will enable automakers to dramatically speed up the software development process from the idea stage to mass production, including live, aftermarket feature updates.
Growth in Key Regions: Over the next few years, TTTech Auto expects to create hundreds of additional high-tech jobs around the world. Expansion plans include international growth with a strong focus on Asia.
In China, TTTech Auto already operates the Technomous joint venture with SAIC Motor Corporation, China’s largest automaker in this increasingly important automotive market.
TTTech Auto will hire talent in software and security engineering, strategic product management and business development in Europe, North America and Asia.
Build Safety Technology Leadership Capabilities: TTTech Auto will pursue its M&A strategy by acquiring complementary products, technologies and services to meet the ever-increasing safety needs of automakers as the industry reaches new levels of automation on the way to autonomous driving and the complexity of car software functions increases.
Georg Kopetz, CEO of TTTech Auto, says: “The next few years will be crucial for the entire industry in the transition from automation to semi-autonomous driving and the software-defined vehicle.
“With MotionWise, we are supporting this industry transformation as an independent company with the most advanced security software platform on the market. This funding will strengthen our leadership position in automotive safety software and significantly increase our global footprint. »
Kevin Clark, President and CEO of Aptiv, said: “Since 2017, Aptiv and TTTech Auto have successfully deployed security software systems in vehicles of various Volkswagen Group brands.
“TTTech Auto’s expertise in providing end-to-end real-time behavior for safety-critical systems complements our software platform to accelerate development, integration, testing and validation.
“This investment advances our software strategy and adds to Aptiv’s comprehensive capabilities, enabling customers to democratize advanced security systems faster and at lower cost.”
Markus Duesmann, CEO of Audi, said: “Audi and TTTech Auto have a long-standing strategic partnership in the development of automated driving technology.
“We now look forward to expanding this successful cooperation as TTTech Auto partners with Aptiv to enhance its capabilities and accelerate the commercialization of its automated driving technology.
“Together with the Volkswagen Group’s software company CarIad, Audi is pushing the introduction of this technology at full speed and TTTech Auto is an important partner on this path.”
Aptiv, Audi and TTTech Auto have a common track record: the three companies worked together on Audi’s central driver assistance controller for automated driving. The successful collaboration on this platform was rewarded with the Automotive News Pace award in 2019.
JP Morgan AG was sole placement agent for TTTech Auto and DORDA Rechtsanwälte GmbH acted as legal counsel.
Goldman Sachs acted as financial advisor to Aptiv and Clifford Chance Partnerschaft and Binder Grösswang Rechtsanwälte GmbH advised Aptiv on the legal aspects of the investment.
Freshfields Bruckhaus Deringer Rechtsanwälte PartG mbB, Vienna advised Audi on the legal aspects of the transaction.
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