Seeing Machines secures GBP £26.2m from Mitsubishi Electric

Seeing Machines has announced a strategic investment and collaboration agreement with Mitsubishi Electric Mobility, securing GBP £26.2 million (USD $32.8 million) from the latter in a move aimed at enhancing their driver and occupant monitoring technologies.

The collaboration agreement focuses on joint business opportunities in Japan, leveraging Seeing Machines' expertise in AI-powered operator monitoring systems and Mitsubishi Electric Mobility's market presence in the automotive sector.

Kunihiko Kaga, President and CEO of Mitsubishi Electric Mobility, commented on the partnership: "Mitsubishi Electric Mobility has been collaborating with excellent partners, expecting technological synergies in the CASE ('Connected', 'Autonomous', 'Shared & Service', 'Electric')-related business, which has great market potential.

"We position this partnership with Seeing Machines as part of this strategy and are confident that by combining the strengths of both companies, we will be able to provide the market with new and attractive products. We are very pleased to be taking on a new business challenge with Seeing Machines, our best partner, in the rapidly growing DMS market."

Seeing Machines and Mitsubishi Electric Mobility will also focus on the aftermarket segment in North America, Japan, and Europe. Both companies aim to leverage the distribution network of Mitsubishi Electric Mobility to promote the Guardian Generation 3 product, which is expected to drive significant growth and profitability for Seeing Machines. The collaboration extends to new adjacent markets as well, relying on Mitsubishi's established position in these areas.

Paul McGlone, CEO of Seeing Machines, said: "This is a pivotal partnership in our approach to strategically align with a number of key, industry leading Automotive Tier-1s with high capability, complementary strengths and market focus in the DMS/OMS space. We have been working closely with our new colleagues at Mitsubishi Electric Mobility and the synergy is clear: promising significant benefits for both of our businesses.

"We have carefully considered this investment in Seeing Machines to ensure that we remain focused on supporting our existing key customers and programs across our transport focused businesses, while we accelerate growth in currently under-served markets and together explore new opportunities in adjacent industries."

As part of the investment, Mitsubishi Electric Mobility will increase its stake in Seeing Machines to 19.9% through the acquisition of additional shares. This move is expected to bolster Seeing Machines' balance sheet and support its expansion strategies.

Mitsubishi Electric Mobility has been a leader in developing technologies that estimate driver conditions such as inattention and drowsiness. The company also focuses on biometric detection techniques, including heart rate monitoring, to improve safety and prevent accidents. This aligns with Seeing Machines' mission to enhance transport safety through real-time monitoring of driver states.

The agreement is seen as a promising development for both companies, allowing them to pursue strategic growth in the driver and occupant monitoring systems market. As part of their joint efforts, the companies are preparing to participate in a new wave of automotive business tenders expected in 2025, particularly in Japan.