April 4, 2006
Continental AG to acquire Motorola’s automotive electronics business
Frankfurt, Germany – Continental AG and Motorola have announced that they have entered into an agreement under which Continental will acquire Motorola’s automotive electronics business for approximately US$1 billion in cash. The transaction includes Motorola’s controls, sensor, interior electronics and telematics (embedded wireless vehicle communications) business. Continental, in addition to tires, also supplies brake systems, chassis components and vehicle electronics.
In a press release, Continental said that the acquisition “marks another milestone in Continental’s mission to make individual mobility safer.” The purchase will increase its product portfolio and research and development capabilities, double overall sales of its Automotive Systems division in North America, and add telematics to the company’s product range. The transaction is expected to be completed in the first half of 2006.