Sightic is world-leading in terms of positive datasets, data collection methodologies, and algorithm maturity with regard to minimizing false positive signals.
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Key Transaction Details
- Purchase Price: The fixed price is SEK 60.5 million, to be paid in new Smart Eye shares.
- Additional Purchase Price: In addition, a maximum of SEK 50 million may be paid based on financial and operational targets by 2030.
- Timing: The transaction is expected to close in March 2026, following regulatory approval (ISP).
- Personnel: Approximately 20 employees will transfer to Smart Eye.
Strategic Benefits and Objectives
- Technological Leap: By combining Sightic’s algorithms and Smart Eye’s extensive databases, the companies will be able to develop impairment detection faster and more cost-effectively.
- New Business Area: Smart Eye is establishing a new Industry & Law Enforcement unit, focusing on detection methods for substances other than alcohol.
- Market: The combined technology will be ready for serial production with automotive manufacturers (OEMs) as early as during 2026.
" 2026 has started strongly, and when we look back in a few years, we will likely see it as the year when the fight against impaired driving reached a turning point."
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Key for current owners: ”The Board of Directors intends to issue the new shares pursuant to the authorization granted by the Annual General Meeting on 13 May 2025. Based on the volume-weighted average price (VWAP) of the Smart Eye share during the last 20 trading days prior to the signing of the share transfer agreement, 721,410 new shares will be issued in connection with the transaction, corresponding to a subscription price of SEK 83.86 per share. The share issue will result in dilution of approximately 1.9 percent based on the number of existing shares in the Company.”
Well, this is probably better than burning cash, but I would hope for full focus from the company now on reaching positive free cash flow.
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There is no silver lining in this deal. 20 more people on the payroll will eat into operating cash flow like a rat. When the forecasts inevitably go wrong, the acquisition—in the form of negative cash flow—will turn out to have cost something completely different than imagined, and eventually, a share issue will be on the way. Not like this.
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Personally, I am more confident that SmartEye knows what they need—it is unlikely they are just buying a hometown company out of the goodness of their hearts. I see this as a small targeted strike to strengthen their position as the market leader. As Martin has noted, he has “skin in the game.”
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This acquisition is something the forum has been anticipating for several years now. It’s been more a question of when the deal would happen rather than if. It was hard to see Sightic succeeding as an independent company if intoxicated driving detection can be integrated into DMS for a licensing fee of less than one euro. The purchase price is quite okay in my opinion. There’s a lot of buzz in the US right now regarding technology to prevent driving while intoxicated, and I believe the legislation will be implemented soon. Likewise, EuroNCAP is already scoring alcohol detection. To me, this was expected good news. It confirms my view that drunk driving detection will happen specifically through DMS, and Martin has also communicated that acquisitions will be carried out in a way that doesn’t jeopardize positive cash flow.
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Redeye kommentoi Smart Eyen Sightic-yrityskauppaa, joka poistaa merkittävimmän kilpailuuhkan kamerapohjaisessa alkoholin vaikutuksen alaisena tapahtuvassa vaikutuksen alaisena havaitsemisessa ja asettaa yrityksen hallitsemaan markkina-aluetta, josta uskomme tulevan DMS:n päälle kerrostettu vakioturvaominaisuus. Oletuksiemme perusteella kauppa merkitsee noin 6,9–1,4-kertaista käyttökatetta (EBITDA) vuosina 2028–2030. Tätä taustaa vasten nostamme sekä pitkän aikavälin keskimääräistä myyntihintaa (AVT) että perusskenaarion arvostusta.
Increased confidence in market share and ASP uplift leads us to raise our Base Case to SEK120.
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Redeye interview: Martin and the ladies representing Sightic—one with a police background and the other with a psychology background—explain that they used to be competitors, but not anymore. The Sightic representatives don’t seem bitter; instead, they try to see the benefits. They would have performed the same tests. Martin states that collecting data is the most expensive effort, as it requires driving under the influence of substances. They mention test tracks. Martin says it’s done with real cars on closed tracks, and it’s extremely expensive. (Comment: who’s that crazy?)
Smart Eye bought expertise and data. Naturally for cars, but also tools for authorities to screen for being under the influence, with phones and other devices as the operating environment.
Regarding the US, Martin can’t say how things will progress and whether they will leave monitoring in the hands of Europeans. Regarding cars, they note that systems must be developed together with car manufacturers, because a simple beep likely won’t stop a drunk/drugged driver; the car needs to be immobilized. (Comm: That will be quite an undertaking; false positives paralyzing the car…) Europe is moving forward through legislation and NCAP testing; car manufacturers want high scores in the tests.
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