Strategic investments in automotive electronics

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Integral service around a transaction
BY : Diego GutiérrezFebruary Wed, 2019

We analyse from our field of Corporate Finance the automotive electronics sector. Last month we learned about the buy of the firm Talde Private Equity on the shareholding of the P4Q Group. This has encouraged us to carry out an exhaustive search for companies that have recently been sold in the automotive electronics sector.

Strategic investments in automotive electronics

Key Investments in Automotive Electronics

Talde Group buys large part of P4Q

The Basque firm Talde Private Equity has acquired a majority stake in P4Qin order to boost its ambitious growth plan. This news was released on 14 January 2019, where the amounts involved in the transaction are not known.

P4Q, based in Alonsotegi (Vizcaya), is a company specialising in the engineering and manufacturing of electronic products and systemswith a strong focus on the automotive and solar sectors. The company provides a comprehensive service throughout the entire project life cycle, from hardware and software development to industrialisation and mass production of electronic products and systems.

In this new phase, P4Q intends to consolidate the company's leadership in the solar sector by increasing its production capacity and updating its production facilities in Alonsotegi. It also intends to boosting its development in the automotive sectorThe China plant is being finalised for this purpose.

If you want more information about the operation you can find it on the Talde Group website.

Sale of companies in the automotive sector

On a more general level, we have found the following operations of sale of companies in the sector:


1. Magneti Marelli

Fiat Chrysler Automobiles announced on 22 October 2018 the definitive agreement to sell its Magneti Marelli automotive components business to Calsonic Kansei Corporation, a leading supplier of automotive components in Japan. Under the terms of the agreement, the sale of the business will was valued at 6.2 billion euros..

Magneti Marelli is committed to the design and development of production of high-tech systems and components for the automotive sector. They seek to combine quality, competitive offerings, technology and versatility, with the aim of making key technologies available to the end user at a competitive price.

With combined revenues of EUR 15.2 billion, this was the largest a decisive step towards the strategic ambition of both companies to become a leading, globally diversified Tier 1 supplier.. The new entity operates nearly 200 R&D facilities and centres in Europe, Japan or America.


2. Howe and Howe Technologies

Founded in 2006 in Maine, USA, Howe and Howe Technologies has become a world leader in the extreme vehicle manufacturing and one of the main creators of advanced robotic platform solutions and applications. With a reputation for innovation, efficiency and outstanding ethics, they continue to exceed expectations and impress industry and customers, from the US government to national utilities to Hollywood filmmakers.

On 26 October 2018, we learned of the sale of the company to Textron Systemsfor an undisclosed amount.

"Textron Systems has focused heavily on unmanned aerial vehicles (UAVs). UAV). Therefore, adding Howe's expertise in ground-based systems to our portfolio makes economic sense"Textron Systems director Lisa Atherton said in a company statement.


3. Road Track

Road Track is an OEM telematics provider in Latin America and one of the fastest growing service providers in the world. It offers a comprehensive, end-to-end connected car platform for the automotive market with innovative products and services designed for a wide range of customers. Road Track has 1,700 employees worldwide and is the leading OEM telematics provider of commercial fleet, aftermarket and factory-installed telematics solutions.

Iturantelematics company, which also operates in Latin America, announced on 24 July 2018 the purchase of Road Track for USD 113 million.. Ituran paid Road Track shareholders USD 91.7 million for 81.3% of the company, of which USD 75.7 million was paid in cash, 12 million in Ituran shares and the remaining 4 million as a bonus.


4. Alcohol Detection Systems

As its name suggests, Alcohol Detection Systems is a provider of breathalyser-based ignition interlocks (IID). A vehicle equipped with an ignition interlock device may only be driven when the driver passes alcohol tests.

The company was sold to Directed Electronics on 16 January 2018 for an amount that was not disclosed by either party. Directed is North America's largest designer and marketer of vehicle safety.

"Ignition interlock devices truly save lives, and the growth of the IID market has been driven by the greater benefit they provide to society," said Directed CEO Bob Struble. "Directed and ADS share core technology, and we are confident that by bringing our leading product design, technical service and distribution capabilities to the IID market, we will rapidly expand ADS' business."

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