Delphi acquires self-driving startup nuTonomy for $400M

Delphi is acquiring Boston-based self-driving car startup nuTonomy, paying $400 million for the startup, plus $50 million more in earn-outs.

"Our mission has always been to radically improve the safety, efficiency, and accessibility of transportation worldwide," said nuTonomy cofounder and CEO Karl Iagnemma. "Joining forces with Delphi brings us one step closer to achieving our goal with a market-leading partner whose vision directly aligns with ours. Together, we will set the global standard for excellence in autonomous driving technology."

Founded in 2013 by Dr. Karl Iagnemma and Dr. Emilio Frazzoli, nuTonomy is Boston-based company that develops autonomous vehicle technology. It has also been operating autonomous taxis in Singapore since 2016, and recently received permission to test its self-driving vehicles in Boston.

Glen De Vos, Chief Technology Officer at Delphi, said the acquisition will help speed the company’s efforts to bring a fully self-driving car to market — even if that vehicle isn’t one for personal ownership. “The market for consumer vehicles is going to be slow-moving, and that’s going to take some time for the cars you and I buy, that we drive,” he said. “There’s no question that in commercial sector, that automated mobility on demand, logistics on demand, commercial services, transportation services — this is an area where automated driving has really accelerated.”

As part of the deal, nuTonomy will combine more than 100 employees, including 70 engineers and scientists, to Delphi's more than 100-member automated driving team. After the transaction is completed, Delphi will have self-driving operations in Boston, Pittsburgh, Singapore, Santa Monica, and Silicon Valley. nuTonomy’s partnerships with Lyft, Groupe PSA and others will continue and the company will work in parallel with Delphi from its home base in Boston.