This Week in Connected Cars: May 22

More M&A in the Connected Car Space

 

Conti buys Eletrobit’s auto unit. Conti’s purchase of this unit will give it access to hardware + software to enable automated driving. The shocking news it the purchase price of $680m represents a 27x EBITDA multiple.

The business unit has had sales of ~ $200m with a $24m in EBIDTA which is a very high valuation. With Harmon’s purchases in the past few months, this space is getting heated for sure.

The Dashroad Connected Car Platform

We will update you on our connected car platform, a list of public companies that are instrumental in the connected car space.  Since we created this portfolio in early April it has been soundly beating the S&P 500.

As of May 22nd, it has returned +18% vs. the S&P 2.2%.

 

Delphi Sees Growth in Connected Car

Delphi sees growth in connect car space in China. DLPH is developing Internet connectivity options that do not distract drivers which will be introduced in a broad range of vehicles in China. The average car buyer in China is only 33 years old, and this demographic values technology.

Features: Internet + Options not to distract drivers

 

DSRC Gets Fast Tracked?

Secretary Foxx has said that dedicated short range communication is going to get fast tracked to the OMB by the end of the year. Although the FCC has set aside some spectrum for DSRC, getting government approval for use has been a challenge for the past few years. Many companies (and startups) are getting into this space, it will be interesting to see how this will change the connected car ecosystem.

 

 

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