Delphi Acquires NuTonomy

Delphi Automotive plc has agreed to acquire nuTonomy Inc., a software developer for self-driving cars, in a bid to expand and accelerate its autonomous vehicle capabilities.

The $450 million deal, of which $50 million will be based on unspecified performance metrics, is expected to close by year-end. Four-year-old NuTonomy will continue to be based in Cambridge, Mass., and led by co-founders Karl Iagnemma and Emilio Frazzoli.

The company will add more than 100 employees—including 70 engineers and scientists—to Delphi’s more than 100-member autonomous driving team. Delphi plans to integrate nuTonomy’s autonomous vehicle operating platform with that of the Ottomatika system it acquired in 2015.

NuTonomy plans to continue its autonomous pilot tests with Lyft Inc. in Boston and PSA Group in Singapore. Delphi also is conducting tests in the two cities.

Delphi expects the acquisition will hasten its planned deployment of Level 4 autonomous vehicle applications for commercial services in select global cities from 2020 to 2019. More widespread use, possibly including consumer applications, remains targeted for 2021 or later. Delphi says it’s on pace to have 60 autonomous cars on the road across three continents by the end of 2017.