Autonomous vehicle software supplier Aptiv has agreed to acquire Intercable Automotive Solutions for around $600 million.
The addition of the Bruneck, Italy-based manufacturer of busbar and battery cell technology would bolster Aptiv's high voltage power portfolio and strengthen its standing in Europe.
The deal, expected to close before the end of the year, is for an 85 percent equity stake in the company, according to a Tuesday statement. The Mutschlechner family will retain 15 percent ownership in the company they founded in 1972.
"The combination strengthens our position as a full system supplier for electric vehicle manufacturers," Aptiv CEO Kevin Clark said in the release. "In addition, Intercable's differentiated technology design and manufacturing capabilities enable a more efficient and cost-effective vehicle assembly operation for our customers."
Intercable Automotive Solutions will operate as a standalone unit of Aptiv. The company's customers include Volkswagen, BMW, Mercedes-Benz, Volvo and Renault-Nissan-Mitsubishi.
Aptiv's largest customer is Stellantis, which accounted for 11 percent of sales in 2021, according to its year-end financial report. General Motors was 8 percent of its business, Ford was 7 percent and Tesla was 4 percent. Other customers include VW and Toyota.
Aptiv announced in 2019 it would form a $4 billion joint venture with Hyundai based in Boston, where it planned to offer a driverless autonomous platform for robotaxi providers, fleet operators and automakers.
For the Intercable Automotive Solutions deal, Goldman Sachs is serving as financial adviser to Aptiv, and Clifford Chance is its legal adviser.
"Joining forces with Aptiv will enable us to bring our advanced products and technologies to customers around the world by leveraging their extensive scale and global reach," Intercable's CEO Klaus Mutschlechner said in the release.