Seeing Machines enhances partnership with Caterpillar through new $16.5m agreement

Seeing Machines Limited (AIM: SEE), a leader in advanced computer vision technology, has announced a significant extension of its partnership with Caterpillar Inc., the global leader in mining and construction equipment. The two companies have entered into a Revised Master License and Marketing Agreement, effective for the next five years. This agreement comes as the previous contract was nearing its expiration in August 2024.

Under the terms of the new agreement, Caterpillar will pay Seeing Machines an up-front license fee of $16.5 million. This fee is specifically for the use of Seeing Machines’ Guardian technology, which is aimed at enhancing operator safety across various industries. Furthermore, the agreement allows Seeing Machines more freedom to market its Guardian solutions directly to on-highway vehicle operators and through its distribution network in select market segments.

In addition to the financial aspects, the Revised Agreement includes a commitment to co-develop further driver safety technology. These advancements will leverage Seeing Machines’ proprietary technology to create more sophisticated and competitive products for the heavy equipment sector. Development projects under this initiative will be defined and priced individually, ensuring both parties contribute to and benefit from the enhanced safety features.

Paul McGlone, CEO of Seeing Machines, expressed his enthusiasm about the renewal of their partnership with Caterpillar. “When we signed our initial strategic agreement in 2015, it was a transformational moment for the industry. This revised agreement not only reiterates Caterpillar’s confidence in our technology but also sets a robust agenda for our collaboration over the next five years,” McGlone stated. He highlighted that the substantial upfront payment would significantly strengthen Seeing Machines’ cash reserves, supporting its strategic business objectives towards achieving a cash flow break-even by FY2025.

This deal marks a pivotal development for Seeing Machines, allowing it to expand its technology’s application beyond its traditional mining sector into general construction and other core industries. The company recently launched its third generation of the Guardian hardware, which complies with the European General Safety Regulation and is being adopted by bus and truck manufacturers. This new hardware incorporates advanced algorithms and precision optics to deliver superior performance under challenging real-world conditions.

Seeing Machines continues to lead in the aftermarket Driver Monitoring System (DMS) solutions, having recorded over 16 billion kilometres of travel across more than 59,000 vehicles globally. This expansion under the Revised Agreement with Caterpillar is expected to further solidify its position in the market and enhance its ability to meet regulatory-driven demands across various industrial sectors.

The enhanced partnership between Seeing Machines and Caterpillar showcases the growing importance of safety technology in heavy industries. This agreement not only extends their mutual commitment but also opens new market opportunities for Seeing Machines, positioning it well for future growth and innovation in the sector.