China’s Thundersoft has acquired Finnish startup Rightware, the provider of automotive user interface software, for $68 million.
The 2009-founded Rightware raised $9.5 million from local VC firms Nexit Ventures, Inventure and Finnish Industry Investment.
The deal is expected to be closed in early 2017 and Rightware will remain “an independent company” headquartered in Finland. Rightware’s 2016 turnover is expected to reach around 7 million euros, with profitability being reached by the end of the year.
Rightware’s flagship product, Kanzi, is used by over 20 global automotive brands. Kanzi enables the creation of digital instrument clusters and infotainment systems that enhance automotive brands and the overall driving experience.
“Kanzi is expected to power over 25 million cars by 2022. With Thundersoft, we can expand this footprint further and support our customers even better,” Rightware CEO Jonas Geust said in a statement.
“The arrangement further strengthens our presence in the growing Asian automotive market and complements our strong footprint in the European and American automotive markets. Thundersoft is already an established software player in the automotive industry and the perfect fit for Rightware,” Geust said.
Thundersoft, founded in 2008 and listed on the Shenzhen Stock Exchange, provides operating system technology and services globally for the mobile, automotive and IoT markets. With its first overseas acquisition, Thundersoft enters the European market and further expands its platform technology and services within the automotive industry.
“The automotive market is one of the fastest growing segments for Thundersoft, and we are providing in-vehicle infotainment and cluster OS solutions to our customers worldwide,” said Larry Geng, CEO of Thundersoft.
“Rightware has the best user experience design technology, which will be featured in more connected cars in the market. In combination with Rightware’s unique technology, design know-how and world-class talent, we can bring more value to our customers and transform the automotive industry with our innovations,” Geng said.
The current Rightware management will remain and re-invest in the company. Rightware currently employs around 50 professionals and has a 12-month plan to recruit 20 new experts, approximately half of which are expected to be recruited in Finland.