Continental will buy Elektrobit auto unit for 600 million euros

GENEVA (Bloomberg) -- Continental.com will purchase Elektrobit Oyj's automotive company for 600 million euros ($680 million) as the German provider creates systems to empower automated driving.
Elektrobit, a Finnish manufacturer of applications and components, will alter its title to Bittium Oyj once the offer is total and can pass most or all the sale profits to investors, the organization said in a statement nowadays.
Investors holding 46% of Elektrobit inventory have consented to the deal.
Growing need for technology enabling cars to go at least partially free of a motorist's control has supported takeovers in the parts business, including ZF Friedrichshafen's obtain this year of TRW Automotive Holdings. The marketplace for automatic-driving techniques may complete $42 billion by 2025, Boston Consulting Group believed in January.
"It is a tiny acquisition for Continental, but it is sensible to reinforce their computer software company," said Juergen Pieper, a Frankfurt-based analyst with Bankhaus Metzler. "The cost seems high-priced but itis a future-oriented business."
Automotive electronic equipment are an important portion of Continental's scheme to boost annual sales by at least 4 5% by the conclusion of the decade.
The producer has declared partnerships on automatic driving before two years with U.S. firms International Company Devices and Cisco Methods.
Spinoff fell
Elektrobit mentioned to day that it is dropping a strategy summarized in February to spinoff its wireless section using another stock listing in mid-2015. Instead, an extra-ordinary share holders meeting planned for June 11 to the first spinoff will convene to approve the Continental offer.
The obtain is targeted for completion in the 3rd quarter, Continental stated.
The Finnish firm's automotive unit created 22.4 million euros in net profits before interest, taxation, depreciation and amortization on revenue of 171.4 million euros last year. The company has a work force of about 1,900 individuals, Continental stated.
The disposal will create a one time increase to Elektrobit's net net gain of 530 million euros, the Finnish firm said.
Continental.com ranks No. 4 on the Automotive News Europe list of the top 100 global suppliers with worldwide original equipment automotive components revenue of $33.5 billion in 2013.
Automotive News Europe contributed to this report
Contact Automotive News

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Technology
Amalgamations - Acquisitions - Takeovers
Continental AG
Providers
Applications

Self-Driving Vehicles
Marketing

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18.05.2015
ID:1997

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