Seeing Machines Ltd (AIM:SEE, OTC:SEEMF) a leading developer of AI-powered operator monitoring systems, has entered into a strategic collaboration with Mitsubishi Electric Mobility Corporation.
The Japanese giant is also investing £26.2 million into the business by acquiring new shares at a premium to their market value.
The collaboration will be centred on driver and occupant monitoring systems (DMS and OMS) aimed at enhancing automotive safety.
Mitsubishi Electric Mobility, a specialist in automotive products, will work with Seeing Machines to accelerate the adoption of these technologies in the Japanese automotive market.
Japanese original equipment manufacturers (OEMs) are expected to respond to increasing regulatory and New Car Assessment Programme (NCAP) safety requirements, with a wave of tenders anticipated throughout 2025.
As part of the partnership, the two companies will also target the aftermarket segment in Japan, Europe, and North America.
And Seeing Machines’ Guardian Generation 3 technology will be distributed through Mitsubishi Electric Mobility’s extensive aftermarket network, enabling faster market penetration and advancing Seeing Machines’ path to profitability.
The collaboration also opens opportunities for Seeing Machines to expand into adjacent markets where Mitsubishi has established a strong position.
Meanwhile, the investment was made at a 12% premium to Seeing Machines’ 30-day volume-weighted average price and represents a 15% stake in the company’s issued share capital prior to the issuance of new shares.
Additionally, Mitsubishi plans to increase its holding to 19.9% through a secondary share acquisition, further solidifying its commitment to the partnership.
Seeing Machines CEO, Paul McGlone, 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."