Finnish startup Rightware, which sells software used by automakers to design and develop user interfaces for their cars, announced yesterday its acquisition by Chinese company Thundersoft for $68 million.
The deal is expected to be closed in early 2017. Rightware's flagship product, Kanzi, which enables the creation of digital instrument clusters and infotainment systems, is currently being used by over 20 global automotive brands and, according to the startup's CEO Jonas Geust, will power more than 25 million cars by 2022.
"This arrangement further strengthens our presence in the growing Asian automotive market and complements our strong footprint in the European and American automotive markets," Geust said in a statement.
Thundersoft, founded in 2008 and listed on the Shenzhen Stock Exchange, provides operating system technology and services globally (with seven R&D centers in China,and support centers in Japan, South Korea and the U.S.) for the mobile, automotive and IoT markets.
Rightware's, its first overseas acquisition, will allow the company to enter the European market and further expand its platform technology and services within the automotive industry.
"In combination with Rightware's unique technology, design knowhow and world-class talent, we can bring more value to our customers and transform the automotive industry with our innovations," Thundersoft's CEO, Larry Geng, said.
The Helsinki-based startup, which currently employs around 50 professionals, will remain an independent entity with its current management and will continue to invest in the automotive business in Finland, recruiting 20 new experts over the next 12 months.
The company's turnover has grown rapidly in recent years, and for 2016 is expected to reach around 7 million euros, with profitability being reached by the end of the year.
Rightware's exit represents yet another sign of the growing importance of startups from the Nordics in the global entrepreneurial landscape. Not by chance, according to the latest PWC's Ipo Watch Europe report, Nasdaq OMX Nordics recorded more IPOs in terms of volume and value than London's stock excange.
With Brexit looming, will we soon witness an even stronger shift in dominance?
