Dutch semiconductor manufacturing and design company NXP Semiconductors N.V. (NASDAQ:NXPI) has agreed to acquire TTTech Auto, a software solutions provider specializing in safety-critical systems for software-defined vehicles (SDVs).
The all-cash transaction, valued at $625 million, aims to strengthen NXP's position in the automotive industry.
With this acquisition, NXP enhances its CoreRide platform, a solution for SDVs, by integrating TTTech Auto's software expertise.
TTTech Auto, based in Vienna, Austria, has long provided solutions that optimize performance, safety, and integration for automakers.
Through this deal, NXP gains access to TTTech Auto's skilled workforce of over 1,100 engineers and its established relationships with major automotive OEMs to accelerate SDV development and enable faster market deployment.
The SDV market is expected to expand to 45% penetration of global auto production in 2027.
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The acquisition is a key part of NXP's strategy to lead the evolution of intelligent edge systems for both the automotive and Industrial IoT markets.
"The inclusion of TTTech Auto's software into the NXP CoreRide solution further strengthens NXP's automotive value proposition and accelerates the automotive industry's transformation to software-defined vehicles," said NXP Executive Vice President Jens Hinrichsen.
The acquisition is still pending regulatory approvals, and the companies plan to expand their presence under the NXP brand.
For the third quarter, NXP posted earnings of $3.45 per share, beating the consensus estimate of $3.43.
NXP Semiconductors held cash and equivalents of $3.1 billion as of September 29, 2024.
Price Action: NXPI shares closed higher by 2.18% at $213.41 on Monday.
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