Automotive know-how provider Aptiv stated Tuesday it has agreed to purchase software program agency Wind River from personal fairness agency TPG Capital for $4.3 billion in money because it seeks to capitalize on a surge in spending by automakers to digitalize their automobiles.
The all-cash deal will increase Aptiv’s footprint in an space that’s quick turning into the subsequent battleground for automakers, that are spending billions of {dollars} to allow over-the-air updates and add smartphone-like options.
As soon as owned by Intel Corp., Wind River develops software program and cloud techniques for a number of industries reminiscent of automotive, aerospace, protection, industrial, medical and telecommunications. Final 12 months it generated income of about $400 million.
Aptiv stated it might finance the deal via a mix of money and debt. Shares in Aptiv fell 2.3 % to $160.94 in early buying and selling.
“The automotive business is present process its largest transformation in over a century, as related, software-defined automobiles more and more develop into important components of the broader clever ecosystem,” Aptiv CEO Kevin Clark stated in a press release.
“Totally capitalizing on this chance requires complete options that allow software program to be developed sooner, deployed seamlessly and optimized all through the car lifecycle by leveraging data-driven insights.”