Sign up for our weekly emails to stay up to date on the latest news!
Cepton, Inc. has signed a definitive agreement to be acquired by KOITO MANUFACTURING CO., LTD. This transaction aims to bolster Cepton’s lidar technology commercialization through financial stability and scalability. Post-acquisition, Cepton will function as a privately held subsidiary of Koito, headquartered in San Jose, CA.
Key Highlights:
- Partnership since 2017: Cepton and Koito have been collaborating to industrialize high-performance lidar solutions.
- Transaction details: Cepton stockholders will receive $3.17 per share, a 25.3% premium on the closing price as of July 26, 2024.
- Strategic benefits: The acquisition will enhance Koito’s automotive sensing capabilities and expand Cepton’s market reach.
- Operational changes: Cepton will operate as a privately held indirect subsidiary of Koito in the U.S.
- Approval and closing: The transaction, approved by both companies’ boards, is expected to close in the first quarter of 2025, pending regulatory approvals and stockholder consent.
“I am excited about the next stage of Cepton’s growth as we embark on a new journey together with Koito,” said Dr. Jun Pei, CEO and Co-founder of Cepton. “Over the past few years, we have achieved many remarkable milestones in product innovation and development, establishing ourselves as one of the most trusted lidar solutions providers in the automotive industry. A significant portion of our efforts were greatly supported by Koito as our long-term partner and investor.
“As we carry on our pioneering spirit as a Silicon Valley company and deepen our commitment to driving cutting-edge innovation, leaning on Koito’s century-old heritage of engineering rigor will heighten our dedication to delivering quality solutions to customers worldwide. Our partnership with Koito will provide us with unique access to a broader range of opportunities and resources and help us stay resilient to industry challenges in a way no other lidar company can. This will position us as a leading automotive lidar company for years to come, as Cepton continues to execute current automotive programs and actively manage future OEM initiatives.”
Michiaki Kato, President and COO of Koito, said: “We appreciate and are impressed by the outstanding technical capabilities exhibited by the Cepton team throughout our years of collaboration. We recognize this proposed transaction is an essential step toward the realization of Koito’s vision of ‘lighting the way for our sustainable future.’ We are convinced that having Cepton as a member of the Koito group will significantly enhance the competitiveness of our sensor business.
Under our corporate message of ‘Lighting for Your Safety,’ Koito has been contributing to realizing a safe and secure mobility society through ‘light’ in the field of automotive lighting equipment and other products. By adding lidar, a sensor that uses ‘light,’ to our product lineup, we will contribute to safety and security in the next-generation mobility society where ADAS and autonomous driving become popular, and we will aim for sustainable corporate growth by providing even higher value-added products through synergy between automotive lighting equipment and sensor technology.”
Mitch Hourtienne, Chief Commercial Officer at Cepton, adds: “In addition to broadening business platforms for both Koito and Cepton, we expect our partnership to make a positive impact on the overall automotive lidar ecosystem, driving industry standards and accelerating adoption at scale. We are ready to better support our automotive OEM customers in safely deploying lidar-enhanced assisted and autonomous driving platforms through a streamlined and stabilized supply chain, making safe autonomy truly available in every consumer vehicle.”
O’Melveny and Myers LLP is advising Cepton, with Craig-Hallum Capital Group LLC as exclusive financial advisor to a special committee of Cepton’s board. Cooley LLP is the legal advisor to the special committee. Davis Polk & Wardwell LLP and Nishimura & Asahi are legal advisors to Koito, with WTW as HR advisor.
Closing Conditions and Timing: The transaction, endorsed by both companies’ boards and recommended to Cepton’s stockholders, is set to close in early 2025, subject to stockholder approval, regulatory clearances, and customary conditions.
Sign up for our weekly emails to stay up to date on the latest news!
