Life360 to Acquire Tile for $205 Million

Tile Acquisition by Life360: Expanding Safety and Location Services

Tile, a prominent company in the lost-item tracking sector and a competitor to Apple’s AirTag, is set to be acquired by Life360, a family communication service. The transaction is valued at $205 million. Tile will maintain its branding and continue operating under the leadership of its current CEO, CJ Prober.

Continued Leadership and Team Structure

Currently, no changes are anticipated within the Tile team. CJ Prober will also assume a position on the Life360 board of directors, ensuring continuity and strategic alignment.

Expanding Beyond Family Tracking

This acquisition marks Life360’s second hardware purchase this year, following the acquisition of Jiobit for $37 million. Initially, the goal was to broaden family tracking capabilities for individuals without smartphone access – such as young children, those with special needs, and pets.

However, with Tile, the vision extends beyond family tracking. Life360 aims to create a comprehensive solution for locating “the people, pets, and things” that are important to families.

Synergies and Network Expansion

The combined service will offer a unified platform for tracking family members and belongings. Users will be able to monitor the location of items like wallets, keys, and remote controls utilizing Tile’s location-based technology.

Tile’s existing partnerships with over 50 third-party device manufacturers – including those producing wireless earbuds, laptops, and dog collars – further enhance the deal’s value.

The Tile Finding Network

Tile operates a substantial “Tile Finding Network,” leveraging its user base to locate items outside of Bluetooth range. To date, over 40 million Tile devices have been sold, and the company boasts over 425,000 paying subscribers.

Life360 anticipates that its 33 million smartphone users will expand the reach of Tile’s Finding Network tenfold.

Life360’s Vision

“This acquisition marks a key step forward towards Life360 achieving its vision of being the world’s leading platform for safety and location services,” stated Chris Hulls, Co-Founder and CEO of Life360.

Tile’s Recent Developments and Challenges

Prior to the acquisition announcement, Tile secured $40 million in debt financing. This was strategically chosen to balance debt and equity, avoiding shareholder dilution.

The launch of Apple’s AirTag presented a significant challenge to Tile, leading the company to become a vocal critic of Apple’s business practices and testify before lawmakers regarding potential antitrust concerns.

Product Innovation and Platform Compatibility

Tile recently updated its product line, including the development of an AirTag competitor utilizing ultra-wideband technology, to maintain its competitive edge.

Both companies share a commitment to platform agnosticism, supporting both iOS and Android devices. This compatibility could facilitate international expansion, particularly in markets where Android is dominant.

Retail Presence and Subscriber Growth

The acquisition will grant Life360 access to consumers through Tile’s distribution network of over 27,000 retail stores and the more than one million third-party devices incorporating Tile’s technology.

Life360 projects a 45% increase in its paid subscriber base, reaching approximately 1.6 million users. The combined offering is expected to drive conversions from free to paid subscriptions.

Future Plans and Financial Details

Life360, already listed on the Australian Securities Exchange, had previously considered a dual listing in the U.S. This deal is expected to accelerate those plans.

Credit Suisse and Code Advisors served as financial advisors to Life360, while DLA Piper and Orrick, Herrington & Sutcliffe LLP provided legal counsel. Jefferies LLC acted as exclusive financial advisor to Tile, with legal representation from Fenwick and West LLP.

Concluding Remarks

“This is a great day for Tile, our customers, and our employees,” said CJ Prober, CEO of Tile. “This acquisition brings together two teams with shared values and a common mission, paving the way for innovative solutions in safety and peace of mind. I am excited to lead our team forward and join the Life360 Board.”