Velodyne Lidar Acquires AI Software Company Bluecity

Rhea-AI Summary

Velodyne Lidar (Nasdaq: VLDR, VLDRW) has acquired Bluecity, an AI software company based in Montreal, enhancing its lidar solutions for intelligent infrastructure. This acquisition aims to integrate Bluecity's AI capabilities with Velodyne's lidar sensors to improve safety, traffic management, and urban planning. The transaction is all-stock and expected to have an immaterial impact on operating expenses. Velodyne's Intelligent Infrastructure Solution (IIS) currently sees deployment across four continents, with 74 installations, indicating a robust expansion strategy.

Positive

• Acquisition of Bluecity enhances Velodyne's AI-powered autonomous vision solutions.
• Integration of Bluecity's software expected to improve traffic safety and efficiency.
• The smart infrastructure market for lidar projected to grow significantly from $108M in 2021 to $1.1B in 2027.

Negative

• None.

Acquisition Bolsters Velodyne’s Lidar Solutions for Intelligent Infrastructure

SAN JOSE, Calif.--(BUSINESS WIRE)-- Velodyne Lidar, Inc. (Nasdaq: VLDR, VLDRW) today announced the company has acquired Bluecity, a Montreal-based artificial intelligence (AI) software company whose next-generation, lidar-based solutions solve safety, traffic and infrastructure issues. The all-stock acquisition reinforces Velodyne’s commitment to enabling customer success by delivering industry-leading, AI-powered autonomous vision solutions. The addition of Bluecity is expected to be immaterial to operating expenses and cash usage. Bluecity’s executive, software development and sales teams will join Velodyne.

Velodyne Lidar's Intelligent Infrastructure Solution, powered by Bluecity, installed at an intersection in San Jose, CA. Image credit: Velodyne Lidar

Velodyne and Bluecity have been partnering for many years to deliver lidar-based solutions for smart city applications. Velodyne’s Intelligent Infrastructure Solution (IIS) combines the company’s award-winning lidar sensors and Bluecity’s AI software. IIS delivers traffic monitoring and analytics to improve road safety and efficiency, and helps cities plan for smarter, greener transportation systems. The solution is deployed across four continents with 74 installations, including systems rolled out domestically in California, Colorado, Florida, New Jersey, Maryland, Texas, Nevada and Michigan and internationally in Canada, China, UAE, India, Finland, Germany and Australia.

“We are excited to welcome Bluecity as full members of the Velodyne team. They are an exceptionally talented group of innovators with game-changing AI and analytics software that perfectly complements our lidar sensors and Vella software,” said Dr. Ted Tewksbury, CEO, Velodyne Lidar. “The customer response to Velodyne’s lidar-based system solutions has been incredibly positive. Customers are using our lidar and AI-powered analytics to obtain business insights and improve safety, sustainability, efficiency and transportation equity in ways that were never possible with traditional cameras or radar alone. Our acquisition of Bluecity further affirms that a system solutions approach integrating software and hardware is a major competitive advantage for Velodyne across all our end markets.”

“Bluecity is a big believer in Velodyne’s vision of being the leading provider of AI-powered autonomous vision systems,” said Dr. Asad Lesani, Co-Founder and CEO, Bluecity. “Our experience working with Velodyne’s world-class lidar sensors has shown the power their solutions can bring in making communities safer and more efficient. Our team is thrilled to now be part of Velodyne.”

Velodyne Expands Full-Stack Solutions Portfolio

Velodyne will continue to expand its Intelligent Infrastructure Solution’s capabilities, including monitoring flows of people and vehicles to create a range of new full-stack infrastructure solutions for applications such as parking, retail, casinos and stadiums. According to Yole Intelligence, part of Yole Group, the smart infrastructure market for lidar will grow from $108M in 2021 to $1.1B in 2027¹. To serve these growing markets, Velodyne will integrate Bluecity’s robust AI and analytics software, delivered in a Software as a Service (SaaS) model, with Velodyne’s Vella lidar perception software. This integration will facilitate the creation of new Velodyne lidar-based software solutions for industrial, robotics and intelligent infrastructure, enabling the acceleration of customers’ time to market with autonomous vision systems for these markets.

Vella software translates lidar data into actionable information so that autonomous systems can observe and understand the environments they are operating in. Vella’s real-time data enables autonomous systems to make decisions and take action, such as a robot or vehicle moving safely, and provide analytics, for example a traffic solution helping communities understand root causes of near-miss collisions, red light running and other road user behavior.

¹Source: LiDAR 2022 – Focus on Automotive and Industrial Report, Yole Intelligence, 2022

About Velodyne Lidar
Velodyne Lidar (Nasdaq: VLDR, VLDRW) ushered in a new era of autonomous technology with the invention of real-time surround view lidar sensors. Velodyne, the global leader in lidar, is known for its broad portfolio of breakthrough lidar technologies. Velodyne’s revolutionary sensor and software solutions provide flexibility, quality and performance to meet the needs of a wide range of industries, including robotics, industrial, intelligent infrastructure, autonomous vehicles and advanced driver assistance systems (ADAS). Through continuous innovation, Velodyne strives to transform lives and communities by advancing safer mobility for all.

Forward Looking Statements
This press release contains "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 including, without limitation, all statements other than historical fact and include, without limitation, statements regarding Velodyne’s target markets, new products, development efforts, and competition. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," “can,” "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Velodyne's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include uncertainties regarding government regulation and adoption of lidar, the uncertain impact of the COVID-19 pandemic on Velodyne's and its customers' businesses; Velodyne's ability to manage growth; Velodyne's ability to execute its business plan; uncertainties related to the ability of Velodyne's customers to commercialize their products and the ultimate market acceptance of these products; the rate and degree of market acceptance of Velodyne's products; the success of other competing lidar and sensor-related products and services that exist or may become available; uncertainties related to Velodyne's current litigation and potential litigation involving Velodyne or the validity or enforceability of Velodyne's intellectual property; and general economic and market conditions impacting demand for Velodyne's products and services. For more information about risks and uncertainties associated with Velodyne’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Velodyne’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. All forward-looking statements in this press release are based on information available to Velodyne as of the date hereof, Velodyne undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221004005370/en/

Investor Relations

Jim Fanucchi

Darrow Associates, Inc.

InvestorRelations@velodyne.com



Media

Jane Maynard

Velodyne Lidar

PR@velodyne.com

Source: Velodyne Lidar, Inc.

FAQ

What is the significance of Velodyne's acquisition of Bluecity?

The acquisition strengthens Velodyne's AI-powered lidar solutions, enhancing traffic and infrastructure safety.

How will the acquisition affect Velodyne's operating expenses?

The acquisition is expected to have an immaterial impact on Velodyne's operating expenses and cash usage.

What markets does Velodyne's Intelligent Infrastructure Solution currently serve?

Velodyne's IIS is deployed across four continents with installations in various US states and countries including Canada, China, and Germany.

When was the acquisition of Bluecity announced?

The acquisition was announced on October 4, 2022.