Cepton, Inc. (NASDAQ:CPTN), a lidar solutions innovator, announced that it will be acquired by automotive supplier Koito Manufacturing in a deal estimated to be valued at $50.5 million.
The company said it had signed a definitive agreement for all of its outstanding capital stock not owned by Koito to be acquired for $3.17 per share in an all-cash transaction, representing a premium of about 25% from its closing price on July 26.
Post-acquisition, Cepton will operate as a privately held indirect subsidiary of Koito in the US, with corporate headquarters in San Jose, California.
The company said the deal provides financial stability and scalability critical to commercializing its lidar technology while complementing Koito’s sensor technology roadmap.
The two companies have been collaborating since 2017 to advance high-performance lidar solutions for mass-market automotive, smart infrastructure, and industrial applications.
“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,” Cepton CEO Dr Jun Pei said in a statement.
“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, Koito CEO, added: “We appreciate and are impressed by the outstanding technical capabilities exhibited by the Cepton team throughout our years of collaboration. We are convinced that having Cepton as a member of the Koito group will significantly enhance the competitiveness of our sensor business.”
The transaction is expected to close in the first quarter of 2025, pending approval by Cepton’s shareholders.
The news was positively received by investors, with Cepton’s shares trading almost 20% higher at about $3.01 premarket on Monday.