Continental AG has bought Elektrobit Oyj’s automotive division for 600 million euros (US$677.5 million) to meet growing demand for electronics and safety technology.
The greater use of electronics and software in vehicles, and the ability of cars to connect to smartphones and other devices, is providing automakers, suppliers and technology firms with new business opportunities.
The purchase of Elektrobit Automotive GmbH, which Continental said was unanimously backed by the Finland-based parent’s board of directors and may be closed in the third quarter, will add 1,900 software engineers to the Hanover-based group’s software development team, Continental said.
Goldman Sachs will advise Continental on the transaction, a source familiar with the matter said.
Elektrobit Automotive supplies embedded software solutions and services for carmakers including BMW, Daimler , Ford, GM and Volkswagen, according to the company’s website.
“With this acquisition, Continental is strengthening its development capacity for current projects while boosting its technology development of systems for automated driving,” Continental said.
Purchases have been in the making at Continental which, buoyed by 6.7 billion euros of liquidity reserves cash, reaffirmed earlier this month it remains on the lookout for acquisitions after concluding the purchase of U.S. rubber company Veyance Technologies this year.
(US$1 = 0.8857 euros) – Reuters