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September 30, 2013

Ford Buys Software Startup Livio to Get More Smartphone Apps into its Vehicles

Ford Motor Company announced that it has acquired Ferndale-based Livio, a five-year-old developer of in-vehicle connectivity software.

Ford purchased Livio for just under $10 million and says that it will make Livio a wholly owned Ford subsidiary. Ford says it plans to retain all 11 full-time employees at Livio.

"Livio has solutions, which are largely software-based, allow our customers to bring their content into the vehicle through their mobile device," said Paul Mascarenas, Ford's chief technical officer. He added that Ford and Livio will work together toward developing an industry standard for smartphone-to-vehicle communications.

Ford CEO Alan Mulally has made in-car technology a pillar of the automaker's vehicles. Reports show that systems that integrate cars with mobile phones will be used in 21 million vehicles by 2018.

Jake Sigal, Livio's founder and CEO, says, “Joining with Ford will help his company's efforts to promote a single standard for in-vehicle connectivity. Car companies are now using a variety of software, which makes it harder for app developers to get their apps into cars."

Livio sells vehicle Internet apps for iPhone and Android phones. It also offers a Bluetooth Internet kit for cars and devices that allow drivers to access Internet radio accounts from their cars.

"Back in June, Livio launched Livio Keys, a service designed to connect developers and programmers with automakers and suppliers in using standard protocols and services," Sigal told Crain's for a report in the 2013 Music Issue. Sigal called Livio Keys a "one-stop shop for developers looking to enter the automotive market."

Just last year, Livio made its first contract with an automaker, General Motors Co. The contract was, predictably, for software designed to integrate mobile apps into vehicles.

Livio was founded back in 2008 with a $10,000 loan from Sigal's parents. In 2010 it attracted an equity investment of undisclosed size from the $185 million InvestMichigan Growth Capital Fund. In its beginnings Livio sold Wi-Fi Internet radios for home use.

According to Mascarenas, the deal with Livio marks Ford's first acquisition of a technology company in 13 years.




Edited by Alisen Downey


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