NXP bets $625M on TTTech Auto to accelerate software-defined automotive market: Details – NXP Semiconductors (NASDAQ: NXPI)

Netherlands Semiconductor Manufacturing Design Company NXP Semiconductors NXP Has agreed to acquire TTTech Automotiveis a software solutions provider focused on safety-critical systems for software-defined vehicles (SDV).

The all-cash deal is worth $625 million and is designed to strengthen NXP’s position in the automotive industry.

With this acquisition, NXP has enhanced its CoreRide platform (SDV solution) by integrating TTTech Auto’s software expertise.

Headquartered in Vienna, Austria, TTTech Auto has a long history of providing automotive manufacturers with solutions that optimize performance, safety and integration.

Through this transaction, NXP gains access to TTTech Auto’s skilled workforce of more than 1,100 engineers and established relationships with major automotive OEMs to accelerate SDV development and enable faster market deployment.

It is expected that by 2027, the penetration rate of the SDV market in global automobile production will expand to 45%.

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The acquisition is a key part of NXP’s strategy to lead the development of smart edge systems for the automotive and industrial IoT markets.

“Integrating TTTech Auto’s software into the NXP CoreRide solution further strengthens NXP’s automotive value proposition and accelerates the automotive industry’s transition to software-defined cars,” said NXP Executive Vice President. Jens Hinrickson.

The acquisition, which is still pending regulatory approval, sees the companies plan to expand the reach of the NXP brand.

NXP’s third-quarter earnings per share were $3.45, beating the consensus estimate of $3.43.

As of September 29, 2024, NXP Semiconductors held $3.1 billion in cash and equivalents.

price action: NXPI shares closed 2.18% higher at $213.41 on Monday.

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