TTTech Auto AG yesterday raised €250 million ($285 million U.S.) from Aptiv PLC and Audi AG in its latest funding round. Aptiv is investing €200 million ($228 million), while Audi is increasing its existing stake by €50 million ($57 million). With this latest funding round and a valuation of more than $1 billion, TTTech Auto said it is part of a growing number of automotive technology unicorns.
“The next few years will be critical for the entire industry in the transition from automation to semi-autonomous driving and the software-defined vehicle.” said Georg Kopetz, CEO of TTTech Auto. “With MotionWise, we are supporting this industry transformation as an independent company with the most advanced safety software platform on the market. This funding will strengthen our position as a leader in automotive safety software and significantly increase our global footprint.”
In 2018, TTTech Group, Audi, Infineon, and Samsung founded TTTech Auto with an initial investment of €75 million ($85.8 million) to build software and hardware for safe autonomous vehicles. The Vienna, Austria-based company has 1,200 employees at more than 10 locations worldwide.
TTTech Auto works with leading automotive manufacturers on advanced driver-assist systems (ADAS) and autonomous driving programs. It has previously acquired technology companies in Spain, Turkey, and in Central and Eastern Europe.
TTTech Auto plans for growth
TTTech Auto said it will use the investment to accelerate progress in three strategic areas. The company plans to expand its product portfolio, grow internationally, and extend its capabilities through strategic mergers and acquisitions and product investments.
Expanded product portfolio: TTTech Auto said it will update its flagship MotionWise product to shorten the development cycles for software-defined cars while guaranteeing safety across all car functions. About 2 million vehicles already drive safely based on MotionWise, claimed the company.
TTTech Auto said it will deliver MotionWise as an open, modular, standards-based platform. It added that specific tools will enable car manufacturers to accelerate the software development process, from the idea stage to series production, including over-the-air, post-sales feature updates.
Growth in key regions: In the next few years, TTTech Auto plans to create hundreds of high-tech jobs globally. Expansion plans include international growth with a strong focus on Asia. In China, the company already operates the Technomous joint venture with SAIC Motor Corp., the largest carmaker in that growing market.
TTTech Auto will hire talent in software and safety engineering, strategic product management, and business development in Europe, North America, and Asia.
Bolster leadership in safety technology: TTTech Auto said it will acquire complementary products, technologies, and services to meet the ever-growing safety needs as the automotive industry reaches new levels of autonomy and as the functional complexity of software-driven cars increases.
Audi, Aptiv invest in strategic goals
Aptiv, Audi, and TTTech Auto have worked together on Audi’s central driver-assistance controller for automated driving. It was honored with the Automotive News PACE Award in 2019.
“Since 2017, Aptiv and TTTech Auto together have successfully deployed safety software systems in vehicles across various brands of the Volkswagen group,” said Kevin Clark, president and CEO of Dublin, Ireland-based Aptiv. “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 further advances our software strategy and adds to Aptiv’s full-stack capabilities, enabling customers to democratize advanced safety systems faster and at a lower cost,” he said.
“Audi and TTTech Auto have a long-standing strategic partnership in the field of developing automated driving technology,” added Markus Duesmann, CEO of Audi.
“We are now looking forward to expanding this successful cooperation as TTTech Auto joins forces with Aptiv to enhance its capabilities and accelerate its automated driving technology commercialization,” Duesmann said. “With the Volkswagen Group’s software company CARIAD, Audi is driving the introduction of that technology forward at full speed, and TTTech Auto is an important partner along this path.”
J.P. Morgan AG was the sole placement agent for TTTech Auto, and DORDA Rechtsanwälte GmbH served as legal counsel. Goldman Sachs & Co. was Aptiv’s financial advisor, and Clifford Chance Partnerschaft mbB 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. The transaction is subject to regulatory approval and is expected to close within the next two months.
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