13 Years Too Late for Ford Motor Company (NYSE:F)?
Ford Motor Company (NYSE:F) announced that it has acquired Livio, a startup, in an effort to boost its efforts to help drivers access smartphone content safely while they are driving. The Detroit-based Livio is a software developer. Its product allows drivers to connect to their smartphones via the dashboard infotainment systems or car radios. Jake Sigal founded the company 5 years ago. He used to work with Delphi, the parts supplier.
Paul Mascarenas, Ford Motor Company (NYSE:F)’s Chief Technical Officer said that they paid below $10M for the startup that has 11 employees. The carmaker now officially owns the startup but Livio will continue doing business with its existing customers such as GM Motors.
First technology acquisition
This is the first technology startup that Ford Motor Company (NYSE:F) has acquired in the last 13 years. Mascarenas said that this company is perfectly compatible with the carmakers efforts to allow drivers to access their smartphones in a safe manner. With the Livio software, drivers will be able to access phone applications like Spotify, Pandora and Major League Baseball via their smartphones, in a safe manner.
Ford Motor Company (NYSE:F) will outfit 7M vehicles with its Applink system. This system offers drivers the functionality to access apps via voice recognition and the plan is to cover this number of vehicles by 2015. Ford began acquisition talks with Sigal a year ago and the latter said that this deal will help his company accelerate the standard of the industry, which is the need of the hour.
In Friday’s trading session, Ford Motor Company (NYSE:F) stock dipped 1.27%. The shares opened at a price of $17.17 which climbed to an intraday high of $17.20 and dropped to a close of $17.05. Approximately 34.02 million shares were traded on Friday and the average volume of shares traded over 30 days was 36.77 million. The company has a market capitalization of $68.38 billion.