Kalray raises $26 million, anticipating the launch of its third generation of microprocessor that will target two rapidly growing markets: autonomous vehicles and data centers

Noted international technology company, Safran, and Asian investor, Pengpai, join the historical group of investors (ACE Managnement, CEA Investissement, EUREKAP!, Héléa Financière and INOCAP Gestion) in injecting this new round of capital into Kalray.

Grenoble, Paris, le Bourget -- June 22, 2017 -- Kalray, a pioneer in high-performance, low-power manycore microprocessors, has announced the completion of a new round of funding that will total $26 million . For this round, the company has welcomed Safran and the Asian investor, Pengpai, to its list of investors, which historically included ACE Management, CEA Investissement, EUREKAP! Héléa Financière and INOCAP Gestion.

Since its spin-off from the CEA in 2008, Kalray developed a massively parallel manycore architecture that is unique to its microprocessors, called the MPPA® (Massively Parallel Processor Array). This technology, protected by over 20 international patents, increases the processors’ real-time processing abilities while maintaining very low energy consumption. Kalray’s microprocessors are mainly used in two highly-demanding and fast-growing markets – critical embedded applications (aeronautics/defense and autonomous vehicles) and data centers (storage acceleration and high-speed networks). By 2020, the commercial potential of these markets is estimated at $3.25 billion.

A growing international presence, Kalray now counts over 65 employees spread out over its home base in Grenoble (France), and its North American antenna in Los Altos, CA (USA). Since its creation, Kalray has raised over $65 million in capital and public funding, with the notable participation of Bpifrance.

This new round of funding will allow Kalray to accelerate the commercial exploitation of its current solutions and to launch the development of the MPPA® Coolidge, its 3rd generation of microprocessors, which is set to be released in 2018. Based on a fabless model, Kalray exploits the industrial heft of its partners, in particular the global leader TSMC, to ensure the continued growth of its production. Kalray also plans to fortify its team, in particular its engineering team in Grenoble, and to strengthen its commercial network internationally. Kalray plans to open more than 15 positions over the next couple of months, in France and abroad.

Eric Baissus, CEO of Kalray, stated: “The arrival of new technologies, like artificial intelligence and rapid memory storage, will revolutionize our lives, but also create a striking need for high-performance real-time processing over the next few years. Thanks to our microprocessors, Kalray is at the heart of this revolution, capable of offering extraordinary real-time processing abilities. This funding round will give us the means to accelerate our international development and it confirms that renowned companies in the domain consider our technology strategically important for the future of the industry.”

“For the past ten years, Kalray has been developing processing technology with an unbeatable performance versus energy consumption ratio for the size of the component, an essential quality for many embedded technologies, and notably for electronics in avionics. Beyond new applications in aeronautics, like real time health monitoring or cyber security, there are many extraordinary opportunities for Kalray in the automotive domain, around autonomous driving and in the domain of data centers. It’s the complementarity between these three domains that also convinced us as an investor,” adds Eric Dalbiès, Strategy and M&A director of Safran and President of Safran Corporate Ventures.

“Kalray’s job is to be a leader in the world for new generations of microprocessors,” said Mr. Liu, General Manager of Pengpai. “Asia represents a formidable opportunity for Kalray, an opportunity that we will help to transform in the coming months, thanks to our knowledge of the Asian markets.”

Regis Saleur, managing partner of Supernova Invest , says “Starting in 2008, we saw Kalray introduce a major technology disruption. We are very excited about this successful round of fundraising, bringing together, on the one hand, a notable industry player, confirming the maturity of the technology for responding to new embedded processing needs and, on the other hand, funding that is undeniably international.”

“Kalray developed a technology that is, on the global stage, absolutely unique; they can be proud today to be garnering interest from industrial partners working in the domain of critical embedded applications (aeronautics and autonomous vehicles) and data centers. Thanks to its high-level team and this new round of funding, Kalray, who has been accompanied by ACE Management since its creation, will introduce, as early as 2018, a new generation of processors, which will be even more innovative, and continue to pursue its strong growth,” commented Benoit Perrot, partner at ACE Management.
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Advisors:

Legal and Financial advisors of Kalray

Legal:

• Charles Gavoty & Alexandre Wibaux – Jones Day

Financial:

• Pascal Mathieu, Alice Aymé & Audrey Nodin-Parsons – Gilbert Dupont
• Vincent Le Sann & Stanislas Jannet – Portzamparc BNP Paribas
• Robert Troy & Yuhua Chen – Agave Partners Holdings

Legal and Financial advisors of Safran

Legal:

• Philippe Beauregard – Brunswick

Financial Auditor:

• Nicolas Tixier – Grant Thornton

Legal advisors of Pengpai

Legal:

• Laurent Schoenstein & Isaure Sander – Clifford Chance

Kalray exhibits this Thursday, June 22, 2017 at the International Paris Air Show at Bourget in the start-up area “Paris Air Lab” (Hall Concorde)
The company will also be present at Safran’s booth (hall 2a A228 & A252)

About Kalray
Kalray is a fabless semiconductor company and pioneer in developing a new generation of processors – manycore processors – that offer extreme computing, low power consumption and low latency. Its innovative MPPA® architecture is used today in cutting-edge critical embedded technologies, like autonomous vehicles, and for acceleration in data centers. For more information: www.kalrayinc.com

About Safran
Safran is a high-tech international company and tier1 component supplier in the domains of aeronautics, space and defense. Implanted on every continent, the group employs close to 58,000 people, boasting an annual sales turnover of €15.8billion in 2016. Safran occupies, solely or in partnership, industry-leading positions on the global and European stages for each of its markets. To respond to the evolution of its markets, the group has committed itself to research and development, representing €1.7billion of spending in 2016. Safran is listed on Euronext Paris and is part of the CAC40 and Stoxx 50 indexes.

About Safran Corporate Ventures
Safran Corporate Venture is a corporate venture subsidiary of Safran that finances start-ups and SMEs with innovative technologies. Since its founding in April 2015, it has participated in financing 6 innovative companies in various domains of interest to Group Safran (Industrie 4.0, Embedded components, new materials, new services, new flight platforms).
For more information: www.safran-group.com / Follow @Safran on Twitter

About Pengpai
Pengpai is an Asian investment fund based in France, with the goal of participating in high-tech European companies with a strong added value and a very strong growth potential in Asia. Beyond its financial support, Pengpai helps European companies put strong industry-driven partnerships in place with local Chinese leaders, allowing them to quickly position themselves in Chinese markets.

About CEA Investissement
Founded in 1999, with a €72million funding capacity, CEA Investissement is a subsidiary of the French Alternative Energies and Atomic Energy Commission and is a strategic funding vehicle for the CEA, dedicated to participating in innovative companies who present major opportunities for the organization’s goals. CEA Investissement is supported and advised by the management corporation Supernova Invest, which also manages FNA “ATI” funds and includes subscribers EDF, Safran, Biomérieux and Bpifrance. The Supernova team is split between Paris and Grenoble and has financed more than 50 innovative companies in the domains of microelectronics, life sciences, energy and the environment, as well as materials, instrumentation and embedded systems for the industry.

About ACE Management
ACE Management is a private equity investor, specialized for over 25 years in capital funding for innovation and industry. The company manages 3 lines of products, representing €500million of capital: Aerofund (aeronautics), Brienne (defense and security) and Atalaya (maritime). The subscribers of these funds are European industrial groups (Airbus, Safran, Aurbus Group , Airbus Helicopters, Thales, DCNS, CEA, Lous-Dreyfus Armateurs, Areva), institutional investors (Bpifrance, Fond des Solidarités des Travailleurs du Qebec (FTQ), GICAN – Groupent Industriel de Construction et Activités Navales, CIMR (Caisse Interprofessionnelle Marocaine de Retraite), Société Générale, Crédit Agricole, CIC, AXA, Crédit Coopératif) and 4 French regions, Occitanie, Nouvelle Aquitaine, Pays de la Loire et Center). For more information : www. acemanagement.fr

About EUREKAP!
EUREKAP! Is a capital risk company, created by four Family-Offices if the Lyon region, investing in innovative projects in the start-up phase in the Rhône-Alpes region. Kalray shareholder for the past 7 years, EUREKAP! has mobilized a pool of Lyon-based investors who have contributed to the development of the company throughout the start-up phase.

About Héléa Financière
Héléa Financière is a holding of the Christian Lameloise family. Beyond its participation in the hotel and restaurant sectors, its original center of expertise, Héléa has a significant and diverse collection of LBO operations, of capital development and capital risk. The company has about €50 million of its own funds.

About INOCAP Gestion
Created in 2007, INOCAP Gestion is a Management company with independent and entrepreneurial portfolios managing funds of €450 million. TPE, PLE, ETM and ETI investment specialists, in France, through a range of OPC funds, INOCAP Gestion invests constantly in its champions, who evolve rapidly on an international stage and have developed employment opportunities in France. The company is closely committed to its entrepreneurs in the “real innovative economy”.