Aptiv PLC, an auto components supplier, announced on Tuesday that it will buy software firm Wind River from private equity firm TPG Capital for $4.3 billion, hoping to cash in on a boom in automakers’ investment to digitalize their vehicles.
The all-cash transaction would help Aptiv grow its reach in an area where automakers are investing billions of dollars to enable over-the-air updates and add smartphone-like functionality.
Wind River, which was previously owned by Intel Corp, creates software and cloud systems for a variety of industries, including automotive, aerospace, defense, industrial, medical, and telecommunications. In 2021, its revenue was estimated to be around $400 million.
Aptiv, whose customers include Stellantis NV, Volkswagen AG, and General Motors Co, struggled with supply chain issues for much of 2021, but demand for its automated driving systems has increased.
Wind River’s vehicle software will be combined with the business’s Smart Vehicle Architecture platform, according to the company. Within Aptiv, Wind River will operate as a separate entity.
Aptiv expects revenue of $15.1 billion to $15.5 billion in 2021, which, if realized, would be the company’s largest in seven years.
