Auto supplier Magna International Inc. has signed a purchase agreement to acquire Telemotive AG, an automotive electronics producer based in Germany.
Telemotive has five German facilities and approximately 550 employees, which will be integrated into Magna's vehicle engineering and contract manufacturing operating unit, Magna Steyr.
Magna said it had acquired Telemotive to add electronics expertise to Steyr's engineering service product portfolio, highlighting specifically vehicle connectivity, Human Machine Interface (HMI) and infotainment.
Telemotive lists its expertise in the areas of bus systems, infotainment, connectivity, driver assistance, electromobility, vehicle diagnostics and EMC.
Magna has extensive plastics production globally for interior and exterior parts.
Günther Apfalter, president of Magna Europe and Magna Steyr, said: “In today's era of digitization, it is critical for suppliers like Magna to have engineering expertise in these core areas. As the car evolves from primarily mechanical to more electronic systems, we are in a unique position, with deep systems knowledge and full vehicle electronics expertise to continue to deliver innovative solutions to the market.”
Subject to regulatory approval, Magna expects the transaction to close in the second quarter of 2016.