Delphi Automotive Plc (NYSE: DLPH) has agreed to acquire auto technology company nuTonomy for up to $450 million. The purchase price includes a $50 million earn-out payment.
Boston-based nuTonomy makes technology that are used to build self-driving cars. The company has a partnership with Lyft, along with other transportation companies. With the addition of nuTonomy, Delphi will have 60 self-driving cars in its fleet by year's end. GCA Advisors LLC and Goldman, Sachs & Co. (NYSE: GS) are advising Delphi.
"Our mission has always been to radically improve the safety, efficiency, and accessibility of transportation worldwide," says nuTonomy CEO Karl Iagnemma. "Together we will set the global standard for excellence in autonomous driving technology."
Delphi, located in Gillingham, England, is transportation technology maker. The company is in the process of splitting up into two separate businesses; with one concentrating on electronics; and the other on automotive technology. Earlier in 2017, Delphi acquired auto data provider Movimento.
The automotive industry is going through a major shift, as cars are being made with additional technology, including software for self-driving cars and connected devices. The auto tech sector is highly fragmented, and software makers are getting snatched up, as more companies invest in the sector.
Strategic buyers have been looking to grow in the auto tech industry. Renesas Electronics Corp. bought Intersil. In 2016, Verizon Communications Inc. (NYSE: VZ) acquired Fleetmatics and Samsung Electronics Co. purchased Harman.