Gapwaves has entered into a licensing and development agreement with time limited exclusivity for corner and side radar with HELLA, one of the largest manufacturers of radar in the automotive industry. As part of the agreement, HELLA will also invest 182,3MSEK in Gapwaves in a directed new issue of 3,100,000 B shares, the investment covers approximately 10 percent of Gapwaves' capital. Gapwaves will in addition provide development services to HELLA.
Over the past year, HELLA has evaluated Gapwaves’ technology through several design and prototype projects. By entering into this licensing agreement, HELLA receives the right to use Gapwaves’ patented technology for waveguide-based antennas within specific applications. Gapwaves will cooperate with HELLA in the development of radar antennas with an expected start of production in 2024.
“By combining our competences and implementing Gapwaves technology into our next-generation of corner radar sensors based on 77 GHz, the performance will be significantly increased," said Michael Jaeger, executive board member of the Business Division Electronics at HELLA. “This strategic partnership between Gapwaves and HELLA is an important step to develop cutting edge radar solutions to enable automated driving functions and thus to further strengthen our market position in this important growth area.”
Through the development of more advanced active safety systems and self-driving vehicles, the market for automotive radar and higher-resolution radar sensors solutions is expected to increase sharply in the coming years. This will drive demand for Gapwaves innovative technology, as it offers significant performance and cost advantages. The initial lead customer will be a German premium car brand, which secures Gapwaves’ ambition to get into a high volume scenario.
“This agreement clearly shows that Gapwaves antenna technology is a crucial and unique enabling component within the radar market in the automotive industry, a market segment with extremely high requirements,” said Lars-Inge Sjöqvist, CEO of Gapwaves. “ The fact that one of the world's largest manufacturers of automotive radar chooses to license our technology and also invest in Gapwaves is a clear confirmation of the value we bring.”
“This agreement is very gratifying in many ways for the company; a clear milestone and a result of many years innovative technology development and hard work,” said Jonas Ehinger, chairman of the Board. “Gapwaves will benefit from the huge competence and experience that HELLA brings and we look forward to our future cooperation.”