VIENNA—Parts supplier Magna International Inc. is building its vehicle electronics profile as well as its European footprint with a new acquisition.
The Aurora, Ont.-based company has announced it has reached an agreement to buy German automotive electronics firm, Telemotive AG, for an undisclosed amount.
“This acquisition strengthens our position to not only help customers meet today’s challenges, but also those of the Car of the Future including the increased integration of electronic vehicle systems,” Karl Stracke, president of Magna Steyr Contract Manufacturing and Engineering, said. “We are excited to combine our holistic vehicle engineering knowledge with Telemotive’s electronics know-how.”
An engineering service company with a range of auto industry clients, including Audi, BMW, Daimler, Porsche, and Volkswagen, Telemotive has 550 employees across five German plants.
Headquartered in Mühlhausen, the company was founded in 2000. Driver assistance, vehicle diagnotics, electric mobility and “infotainment” are among its core offerings. Under the agreement, Telemotive will be integrated into Magna’s vehicle engineering and contract manufacturing unit, Magna Steyr.
“In today’s era of digitization, it is critical for suppliers like Magna to have engineering expertise in these core areas,” Günther Apfalter, president of Magna Europe as well as Magna Steyr, said. “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.”
Adding significantly to its operations in Germany over the past few month, the new deal follows the Canadian auto parts company’s $2.5 billion acquisition of the Getrag Group of Companies last year.
Subject to customary closing conditions, including regulatory approval, the transaction is expected to close in the second quarter of this year.