Sona Comstar to acquire Serbian firm Novelic
Jan 10, 2023
Gurugram (Haryana) [India], January 10 : Leading global providers of automotive technology solutions Sona BLW Precision Forgings (Sona Comstar) has signed an agreement to acquire a 54 per cent equity stake in Serbia-based Novelic, a leading provider of mmWave radar sensors and full-stack embedded systems.
Millimeter-wave (mmWave) radar sensors transmit pulses of electromagnetic energy and receive reflections back. Radar sensors for cars are typically deployed for blind spot detection, lane change assistance, collision mitigation, parking aid, and rear cross traffic alert features. Full stack technology refers to the entire depth of a computer system application, and full stack developers straddle two separate web development domains -- The front end and the back end.
According to Sona BLW Precision Forgings, the acquisition is expected to be EPS (earning per share)-accretive for Sona Comstar from the first year and offers strong growth opportunities over the medium term.
Sona Comstar said it was also foraying into the ADAS sensor market.
ADAS sensors are a group of automotive sensors used in advanced driver assistance systems. These sensors help keep drivers safe by providing information about the car's surroundings.
Sona in the statement said Novelic was vertically integrated across the value chain from machine learning and perception software to hardware and chip design.
Novelic's calendar 2022 (CY22) revenue and profit after tax (PAT) is estimated at EUR9.3 million and EUR2.5 million, respectively, and it has been profitable every year since its inception, according to Sona Comstar's statement.
With the acquisition of Novelic, Sona Comstar said it has started building its third business vertical of ADAS sensors and software to address the megatrends of increasing vehicle autonomy and automation.
In-cabin sensing is becoming an essential safety requirement in cars globally. Children and pets left behind in locked vehicles have resulted in thousands of fatalities worldwide due to heatstroke. Government regulations and car safety assessment guidelines mandate child presence detection in new car models.
Euro NCAP 2023 requires child presence detection for a 5-star rating. Novelic's mmWave radar technology is the best solution for in-cabin sensing. Sona said Novelic's in-cabin solution was highly accurate as it works under all light conditions, detects vital signs (heart rate and respiration) and locates objects anywhere in the cabin, according to the statement.
