Auto parts supplier Aptiv to buy software firm Wind River for US$4.3b

[DUBLIN] Auto parts maker Aptiv said on Tuesday it would buy software firm Wind River from private equity firm TPG Capital for US$4.3 billion, seeking to capitalise on a surge in spending by automakers to digitalize their cars.

The all-cash deal will give expand Aptiv's footprint in an area that is fast becoming the next battleground for automakers, which are spending billions of dollars to enable over-the-air updates and add smartphone-like features.

Once owned by Intel Corp, Wind River develops software and cloud systems for several industries such as automotive, aerospace, defence, industrial, medical and telecommunications.

Its revenue in 2021 was about US$400 million.

Aptiv, whose customers include Stellantis NV, Volkswagen and General Motors, battled supply chain problems for much of 2021 but has seen rising demand for its automated driving systems.

The company said it would combine Wind River's auto software with its Smart Vehicle Architecture platform. Wind River will operate as a stand-alone business within Aptiv.

Aptiv has forecast 2021 revenue of US$15.1 billion to US$15.5 billion, which if met, could be its highest in seven years.

REUTERS