AMSTERDAM (Reuters) – Dutch computer chip maker NXP said on Tuesday it agreed to buy Austria’s TTTech Auto for $625 million, to strengthen its automotive operations.
NXP is the largest maker of automotive chips, while TTTech Auto makes security-focused ‘middleware’ – software that helps a car’s operating system integrate with applications and deploy updates, while ensuring that critical functions are not compromised. are affected.
“This acquisition combines NXP’s automotive portfolio with a leading global player in safety software solutions,” NXP executive Jens Hinrichsen said in a statement.
The company said the move was aimed at strengthening NXP’s offerings as its automaker customers increasingly consider software, rather than hardware, to determine a vehicle’s design.
Hinrichsen, general manager of automotive integrated systems at NXP, said the purchase would help the company become the “leading provider of cutting-edge intelligent systems” in automobiles.
If the all-cash deal is approved, Vienna-based TTTech, its management and 1,100 employees will join NXP’s automotive arm.
(Reporting by Toby Sterling, Editing by Louise Heavens)