LeddarTech's Path to Public Markets: How a Sensor Fusion Pioneer Plans to Scale ADAS Solutions

LeddarTech, a Quebec-based automotive software company, has announced plans to go public through a merger with Prospector Capital Corp., a SPAC backed by former Qualcomm executives. The deal, expected to close in Q4 2023, values LeddarTech at approximately $348 million and will provide the company with up to $66 million in gross proceeds to fuel expansion.

The Business Combination Structure

The transaction brings together LeddarTech’s advanced perception software technology with Prospector’s capital and market access. The combined entity will be listed on Nasdaq under the ticker LDTC. Prospector’s trust account will contribute roughly $23 million, while an additional $43 million comes from a convertible private placement involving Prospector’s sponsor, FS Investors, Quebec’s government-backed investment vehicle, Investissement Québec, and institutional investors Desjardins Capital and BDC Capital.

The deal has secured unanimous board approval from both LeddarTech and Prospector, with closing contingent on shareholder votes and regulatory clearances from Quebec’s Superior Court of Justice.

Technology and Market Position

LeddarTech has spent over seven years developing low-level sensor fusion and perception architecture for Advanced Driver Assistance Systems (ADAS) and autonomous driving applications. The company holds a significant patent portfolio—150 patents filed with 80 granted—covering foundational technologies in signal acquisition, perception, and sensor fusion.

What sets LeddarTech apart is its sensor and processor-agnostic approach. By operating independently of specific hardware ecosystems, the company’s software-only solution reduces system costs for Original Equipment Manufacturers (OEMs) and Tier 1-2 suppliers while improving performance scalability across entry-level to premium ADAS implementations.

Market Opportunity and Growth Projections

The ADAS and autonomous driving software market represents the largest segment within automotive software, with projections showing an 11% compound annual growth rate (CAGR) through 2030, when the market is expected to reach $42 billion. This expanding opportunity reflects the automotive industry’s accelerating shift toward software-defined vehicles and the growing recognition that low-level sensor fusion reduces both system complexity and cost.

Leadership Transition and Strategic Vision

Charles Boulanger, who has led LeddarTech since 2013, will transition to a special advisor role following the transaction’s close. Frantz Saintellemy, the company’s President and Chief Operating Officer, will assume the CEO position. Saintellemy emphasized that the industry’s preference for low-level sensor fusion architecture aligns with the company’s strategic positioning, particularly as automakers increasingly prioritize cost reduction and safety performance.

Derek Aberle, Prospector’s CEO and former Qualcomm President, will become Chairman of LeddarTech’s board. Aberle highlighted his experience witnessing disruptive technology companies create significant value, positioning LeddarTech as a similar opportunity.

Capital Allocation and Strategic Priorities

The $66 million in proceeds will be directed toward commercializing LeddarTech’s embedded software solutions, expanding its product portfolio, and deepening customer relationships. The company plans to leverage these resources to accelerate product adoption among automotive manufacturers and accelerate its transition from early-mover status to market leadership in the pure-play ADAS/AD software space.

Global Operations and Innovation Hub

Operating from headquarters in Quebec City with research and development centers in Montreal, Toronto, and Tel Aviv, LeddarTech combines North American operational infrastructure with international technical expertise. The company’s distributed R&D model supports its patent development across multiple jurisdictions and market contexts.

The combination of strong early-mover advantage, substantial patent protection, strategic capital infusion, and experienced leadership positions LeddarTech to capture meaningful market share in an expanding sector. As the automotive industry continues its digital transformation, companies offering differentiated, cost-effective perception software solutions like LeddarTech are likely to play increasingly critical roles in next-generation vehicle development.