Delphi Automotive plc (NYSE: DLPH) is looking to grow its automotive electrical connectors business, announcing a second deal in the space in just over a week.
The Gillingham, England-based company is buying Unwired Technology LLC, which specializes in designing and marketing wireless headphones for automotive entertainment systems. The transaction was announced on the heels of Delphi's acquisition of Antaya Technologies Corp., a Cranston, Rhode Island-based wholesaler of on-glass electrical connectors used in the automotive space.
Terms of each transaction were not disclosed.
The Unwired acquisition serves as an exit for American Capital Strategies Ltd. (Nasdaq: ACAS), which bought a majority stake in the Auburn Hills, Michigan-based company for $56 million in June 2005. During that time, Unwired ramped up production by providing more USB connectivity modules and wireless headphone systems for the growing automotive sector.
The two purchases enhance Delphi's product offerings in what is considered to be a rapidly consolidating space. Parts and component suppliers in the automotive sector are being picked up as a means for meet modern driver needs.
Delphi chief executive officer Rodney O'Neal stated that Unwired's products are expected to strengthen Delphi's "overall electrical architecture and electrical connector offerings, which is supporting increased electronics content per vehicle."
For more on automotive parts M&A trend, see Winners of the Auto Aftermarket. For manufacturing coverage, see Manufacturing Deals Reassemble 5 Significant Sectors.