Cepton Completes Acquisition by Koito, Ushering in a New Era for Lidar Deployment
Cepton Completes, a Silicon Valley innovator known for its cutting-edge lidar solutions, has announced the completion of its acquisition by Koito Manufacturing Co., Ltd. (“Koito”), a prominent supplier of automotive lighting systems. The acquisition, finalized on January 7, 2025, marks a pivotal moment in the development and industrialization of Cepton’s lidar technology. With the backing of Koito’s automotive expertise, Cepton is poised to drive forward the next stage of lidar adoption, particularly in the automotive and transportation sectors.
Cepton Completes will continue to operate as a privately held, indirect subsidiary of Koito in the United States, with its headquarters based in San Jose, California. This acquisition combines the strengths of both companies, creating a powerful alliance that will work to reshape the future of mobility by accelerating the deployment of lidar systems in various sectors, including automotive, commercial vehicles, industrial equipment, and transportation infrastructure.
Strategic Significance of the Acquisition
This Cepton Completes acquisition represents a significant strategic milestone for both Cepton and Koito, bringing together two companies with complementary strengths and visions. By combining Cepton’s leadership in lidar innovation with Koito’s expertise in mass-producing high-quality automotive components, the acquisition aims to drive further advancements in the development and scaling of lidar technology for mass-market adoption.
The Cepton Completes synergy between Cepton and Koito is set to enhance the safety, reliability, and sustainability of lidar solutions, particularly in the context of autonomous vehicles. As automotive Cepton Completes manufacturers and suppliers look to expand their focus on autonomous driving, Cepton and Koito are working to unlock the next level of safe, smart, and sustainable mobility solutions. Together, they are committed to advancing precision sensing and intelligent perception technologies that will enhance automotive safety at all levels of autonomy.
Key Highlights of the Acquisition
- A Shared Vision for Automotive Safety: Cepton Completes and Koito share a unified vision to improve automotive safety through the deployment of high-precision lidar and perception technologies. The combined expertise of the two companies will help accelerate the adoption of lidar as a core sensor for autonomous driving.
- Lidar Innovation Meets Automotive Manufacturing Excellence: Cepton Completes innovative lidar technology will be integrated with Koito’s extensive experience in producing premium automotive lighting systems, setting the stage for new developments in precision sensing.
- Increased Financial Stability for Mass-Market Scaling: The acquisition provides Cepton with increased financial stability, enabling the company to make long-term commitments to scale its lidar technology and bring it to a wider market.
- Streamlined Supply Chain and Shortened Development Cycles: By leveraging Koito’s global manufacturing capabilities, Cepton will benefit from a more efficient supply chain, reducing development cycles and enabling faster time-to-market for lidar solutions. This will ensure that the technology can be deployed quickly and effectively in a range of industries.
- Expanded Global Network and Market Reach: The acquisition also enhances Cepton’s ability to tap into Koito’s established network of customers and partners worldwide. This expanded reach will help Cepton penetrate key OEM-driven markets and ensure its lidar technology is accessible to a broader range of automotive manufacturers and other industries.
Leadership Perspectives on the Acquisition
Dr. Jun Pei, CEO and Co-Founder of Cepton, expressed his excitement about the acquisition, highlighting the synergy between the two companies that has been demonstrated through years of collaboration. “We are thrilled to join Koito as one company, given the complementary strengths and close collaboration between our teams,” said Dr. Pei. “The automotive industry has been trialing lidar technology for nearly a decade, and now, the time has come to move beyond trials to full-scale, long-term deployment. Joining forces with Koito will enable us to provide OEMs with lidar solutions that balance performance, reliability, and cost – the key factors driving the industry forward.”
Mr. Michiaki Kato, President and COO at Koito, also shared his enthusiasm about the integration of Cepton Completes into Koito’s portfolio. “The integration of Cepton will strengthen Koito’s ability to lead the industry, especially in the area of precision sensing technologies for diverse vehicle types and applications,” said Mr. Kato. “As part of Koito’s mission to ‘light the way for our sustainable future,’ we aim to make lidar an accessible and essential technology for automakers around the globe. With Cepton’s expertise, we are excited to shape the future of safe, smart, and sustainable mobility solutions.”
Transforming the Automotive and Mobility Landscape
The integration of Cepton Completes lidar technology into Koito’s offerings is poised to transform the automotive and mobility industries. Lidar, which uses laser beams to create detailed 3D maps of the environment, is a critical sensor for autonomous vehicles. It enables precise object detection, which is essential for ensuring safe and reliable operation in complex driving environments. As self-driving technology evolves, lidar’s role in enabling fully autonomous vehicles becomes increasingly important.
The Cepton Completes collaboration between Cepton and Koito will focus on advancing lidar solutions that meet the highest standards of performance and reliability, making them suitable for a wide range of automotive applications. Whether it’s for passenger cars, trucks, or industrial machinery, lidar will play an essential role in enhancing safety features, including collision avoidance, adaptive cruise control, and automated driving systems.
This strategic acquisition also aligns with the Cepton Completes broader trends in the automotive industry toward electrification, automation, and sustainability. With the global push toward reducing emissions and improving fuel efficiency, lidar will help optimize vehicle performance and efficiency by enabling precise sensing and real-time data analysis. Furthermore, lidar’s use in transportation infrastructure projects will aid in the development of smarter cities and safer public transportation systems.
Financial and Operational Impact of the Acquisition
As part of the acquisition, Cepton will cease trading on NASDAQ, and its shares will be de-listed. Each share of Cepton common stock will be converted into $3.17 in cash, representing the value agreed upon in the acquisition deal.
For Cepton Completes, the acquisition ensures greater financial stability, which will support the long-term development of lidar solutions and accelerate the commercialization of these technologies. The acquisition also provides Cepton with enhanced access to Koito’s manufacturing capabilities, facilitating the scale-up of lidar production for mass-market adoption.
Additionally, the partnership with Koito ensures a streamlined development process for new products and solutions, offering Cepton full-stack support from the initial stages of program development to post-market services. This comprehensive approach will enable both companies to efficiently meet the demands of OEMs and other industry stakeholders.
Looking Ahead: A Future of Safe, Sustainable Mobility
With the completion of the acquisition, Cepton Completes and Koito are entering a new chapter in their mission to reshape the future of mobility. Their combined efforts will focus on delivering innovative lidar solutions that enhance the safety, reliability, and sustainability of autonomous vehicles and transportation systems.
The two companies are committed to driving the future of mobility by making lidar a widely adopted technology across the automotive sector. By leveraging their collective strengths, Cepton Completes and Koito are well-positioned to lead the charge in the development and deployment of next-generation autonomous systems.
As the automotive industry continues to evolve, lidar technology will play an increasingly crucial role in making transportation safer, smarter, and more sustainable. Cepton and Koito’s collaboration will pave the way for new advancements in autonomous driving, ultimately making the roads safer for all.
A Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements include projections, expectations, and plans regarding the future of the combined companies, their business strategies, and their financial outlook.
Readers should be aware that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the expectations stated in the press release. These risks include the challenges of integrating the two companies, potential litigation, and unexpected costs or delays related to the acquisition. As with any business transaction of this magnitude, there are inherent risks, but the companies remain confident in the long-term benefits of the acquisition.
Cepton and Koito encourage stakeholders to understand that these forward-looking statements are not guarantees of future performance and should not be relied upon as such.
