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Auto Supplier Aptiv to Acquire 85% of Intercable Unit in EV Tech Push

Published: September 13, 2022
By 2040, almost 50 percent of cars on the road are projected to be electric. (Image: Screenshot / YouTube)

Auto parts supplier Aptiv Plc. announced on Tuesday, Sept. 13 that it would acquire a majority stake in a unit of Italy’s Intercable for 595 million euros ($605.71 million), allowing the U.S. company access to technology used in electric vehicles (EVs).

Aptiv will own an 85 percent stake in the unit, Intercable Automotive Solutions, which manufactures high-voltage busbars that carry more electrical power than traditional cables. It has manufacturing facilities in Europe and Asia.

“Intercable Automotive Solutions is an excellent strategic fit with Aptiv’s Signal & Power Solutions segment,” Aptiv Chief Executive Officer Kevin Clark said in a statement.

Auto parts suppliers are increasingly investing in electric and battery technology to cater to the EV market, which could be worth $5 trillion over the next decade.

Aptiv, which counts Tesla Inc and General Motors Co as customers, in January announced a multi-billion-dollar deal for software developer Wind River to capitalize on the shift to software-oriented vehicles and diversify its revenue stream.

The deal also comes amid automakers’ effort to replicate the success of Tesla’s electric vehicles, as they replace 12-volt wiring systems with much higher voltage cables.

Aptiv’s deal for Intercable Automotive is expected to close before the end of this year, following which the company will operate as a stand-alone business unit.

The transaction is expected to add to Aptiv’s earnings next year. Shares of the company were down 2.7 percent amid a broader fall in market after data showed monthly U.S consumer prices unexpectedly rose in August.

Goldman Sachs & Co LLC served as financial adviser for the deal to Aptiv while Clifford Chance was the company’s legal adviser.

By Reuters. (Reporting by Priyamvada C in Bengaluru; Editing by Vinay Dwivedi)