/ Updated on

LeddarTech prepares to go public

Quebec company LeddarTech, which specializes in sensing solutions for cars, is considering an IPO and doing the planning that goes along with it. If markets hold and avoid a crash, it could happen later this year.

Original article (French only) : La Presse

“Right now, it’s our most logical option,” says CEO Charles Boulanger.

Developing the LeddarTech platform is very expensive, and the company needs capital to achieve its goals.

“Financing the company $50 million at a time isn’t the ideal scenario,” notes Boulanger.

“We need to pick up the pace and look at how to raise more money. We’re exploring different options, and going public is definitely one of them,” he says, adding that the company has just strengthened its board of directors. “The stars are aligning.”

Since the fall, several of LeddarTech’s competitors have gone public or announced plans to do so. Luminar, Velodyne, Aeva, Ouster, and Innoviz have all taken the same path: merging with special purpose acquisition corporations already listed on the stock market.

These moves by LeddarTech’s competitors are a promising sign for Boulanger.

“It gives you an idea of the appetite of investors in our sector,” he says.

“When you see competitors raising 400 or 500 million dollars, you can’t stay on the sidelines forever.”

Big Changes

The global automotive industry is changing rapidly. Electric vehicles are getting a lot of attention, and the development of autonomous vehicles could be disruptive. LeddarTech is front and centre in tackling the connectivity challenge in the automotive sector.

“A battle of the titans is coming with regard to automotive technology. The next 25 years will be very interesting. There are some tremendous business opportunities.”

- Charles Boulanger

According to Boulanger, people won’t be flying from Quebec City to Toronto or Boston to Washington in the not-so-distant future.

“There will be cars designed for sleeping and working. You’ll see new modes of transport popping up that will free up people’s time. Cars will become a place to do lots of other things while travelling,” he says.

“What’s coming is huge. And once your technology gets integrated into a vehicle, you’re in it for the long haul. The barriers to entry are very high.”

The CEO of the 14-year-old, 250-person company says LeddarTech’s technology for merging data collected by multiple sensors gives it a unique business model.

“We offer a platform for OEMs and automakers to manufacture finished products using our technology. Partnerships are fundamental to our strategy. People build on our technology by bringing in complimentary software. It’s a powerful model. We’re at least five years ahead of the competition,” he said.

“Our goal is to become the Android of car sensors.”