Seeing Machines Ltd (AIM:SEE, OTC:SEEMF) said it had picked up an optical technology that will "play a key role in the future of modern vehicles".
It is paying A$5mln over three years to acquire a worldwide perpetual licence from an unnamed start-up that it hopes will lead to a step-change in the performance of cabin monitoring technology.
Specifically, the company reckons the new IP will significantly enhance the reliability of the safety features of products as well as opening the door to new forms of "in-vehicle user experiences".
“Ultimately, the licence is expected to improve the probability of winning new automotive awards, whilst simplifying the complexity and cost of delivering to the most demanding customer requirements. In the future, when the technology is deployed into vehicles, sales royalties may be payable to the licensor,” investors were told.
Chief executive Paul McGlone added: "Seeing Machines vision, processing and optics experts are continually evaluating technologies that may influence or disrupt the cabin-monitoring market and have identified and carefully validated a technology that we believe will play a key role in the future of modern vehicles.
"We look forward to revealing more about this technology at the right time.
“For now, we have work to do to deeply integrate this technology into our stack and will be working closely with key customers preparing and fine-tuning our next-generation of cabin-monitoring systems."
Gloss