Aptiv Agrees to Acquire U.S. Software Company Wind River
Aptiv, a global technology company that develops greener, safer, and connected mobility has announced plans to acquire Wind River from private equity firm TPG Capital. Aptiv will pay $4.3 billion in cash to complete this acquisition. However, Aptiv has said that it would finance the acquisition with a combination of debt and cash.
The deal is expected to close around mid-2022 and is subject to customary terms and conditions.
SEE ALSO: Software Giant Blackbaud Acquires Everfi for $750 Million
Why is Aptiv acquiring Wind River?
Kevin Clark, Chief Executive Officer and President of Aptiv said that the automotive industry is currently witnessing a major transformation as the volume of software-defined and connected vehicles has increased. Besides, they are becoming an integral part of the entire automotive ecosystem and the trend is expected to continue in the future.
This is why Aptiv is looking forward to making inroads in the automotive sector. However, capitalizing on this opportunity requires considerable investment and a range of solutions that facilitate the faster development of software. Besides, these solutions will also help in the smooth deployment of the software through the entire vehicle lifecycle by utilizing data-driven insights.
Similar requirements are fueling the demand for intelligent edges across different end markets. Clark said that Wind River and Aptiv’s rich experience coupled with compatible technologies will provide fertile ground for the development of a software-centric automotive industry.
This deal will also help Wind River cement its market presence in all the industries it caters to. Both the companies have teamed up to create a greener, more connected, and safer connected ecosystem.
How does this acquisition help Wind River?
Over the past decades, Wind River has solidified its position as a formidable force in the intelligent-edge, cloud-native software market.
Kevin Dallas, Chief Executive Officer, and President, Wind River is of the opinion that combining Wind River’s customer base, software, and talent with Aptiv’s complementary technologies will help them realize their shared vision of the new machine economy. He believes that the partnership will accelerate the digital transformation of their customers across different industries with the best-in line software solutions.
How will this deal benefit Aptiv?
This acquisition will allow the company to broaden its horizons and tap opportunities in various high-value industrial sectors. The acquisition will also facilitate a number of end-use innovations and applications.
Aptiv will also integrate River Studio’s offering with its automotive expertise and SVA platform to strengthen its position in the automotive software industry. This will help them provide an economical and faster full vehicle software architecture.
SEE ALSO: Netsuite Acquires Part of Verenia, a Popular CRM and CPQ Vendor Verenia
