Life360 Acquires Jiobit for $37 Million

Life360, a widely used family tracking application, is expanding its reach into hardware. The company announced today the acquisition of Jiobit, a Chicago-based firm specializing in wearable location technology. The purchase price is $37 million.

Deal Details and Potential Value

The majority of the $37 million consideration will be delivered in the form of stock and debt. However, Life360 indicates that the final deal value could rise to $54.5 million. This increase is contingent upon Jiobit achieving specific performance targets over the subsequent two calendar years.

To reach the full earnout amount, Jiobit must sustain its current high growth rates for the next two years, according to Life360.

About Jiobit and its Technology

Jiobit first entered the market in 2018, initially focusing on tracking children and pets. The device is compact and lightweight, designed for attachment to items like belts, shoes, and backpacks. It proved particularly appealing to families seeking a tracking solution for younger children without personal mobile devices.

Earlier this year, Jiobit released an updated version ($129.99) incorporating a combination of radios – Bluetooth, Wi-Fi, cellular, and GPS – alongside sensors. These sensors include an accelerometer/pedometer, a temperature sensor, and a barometer.

Enhanced Connectivity and Durability

A newly designed antenna system was implemented to improve performance in challenging environments like schools, stores, and high-rise buildings. The device also utilizes low-power, wide-area (LPWA) wireless networks to enhance coverage in rural areas with limited cellular service.

Furthermore, the updated Jiobit is waterproof (IPX8) and can withstand submersion in up to five feet of water for 30 minutes. It also boasts an extended battery life.

Integration with Life360

Life360 plans to integrate Jiobit into its existing family safety membership. This will allow the location of family members and pets wearing the Jiobit device to be displayed on the Life360 mobile app’s map interface.

Life360 Premium subscribers will be eligible for a discounted Jiobit device alongside their subscription.

Statements from Leadership

“We’ve long wanted to expand beyond the smartphone into wearable devices, and Jiobit offers the market leading device for pets, younger children, and seniors,” stated Chris Hulls, CEO and co-founder of Life360. “With Jiobit, Life360 would be the market leader in both hardware and software products for families once the deal closes. We will continue to seek out additional opportunities that could further cement our position as the leading digital safety brand for families,” he added.

Life360's Evolution and User Base

Life360 has established itself as a popular app among parents, though it has faced criticism from teenagers. The company has responded to these concerns by introducing features like “bubbles,” which allow teens to share a general location rather than precise whereabouts.

Hulls has also proactively engaged with teenagers on TikTok, utilizing the platform for marketing purposes.

As of the end of 2020, Life360 reported over 26 million monthly active users across 195 countries. The company views the Jiobit acquisition as a means to rapidly enter a new market segment, freeing up resources for other initiatives.

Jiobit Team and Future Operations

All 25 employees of Jiobit, including CEO and co-founder John Renaldi, will join Life360. Initially, Jiobit will continue to operate as a separate entity in Chicago, with plans for eventual integration.

The long-term strategy involves transitioning Jiobit users to Life360 memberships, granting them access to a broader range of features, including driving safety tools and communication functionalities.

While Jiobit devices will remain cellular-based, Life360 is exploring integration with Apple’s Find My network as a supplementary tracking system.

Pending Approval

The acquisition is subject to approval by the boards of directors of both Life360 and Jiobit.