HANOVER, Germany (April 3) — Continental A.G. has agreed to buy Motorola Inc.´s automotive electronics business for about $1 billion in cash.
The deal includes Motorola´s controls, sensor, interior electronics and telematics businesses, Continental said. The acquired units will be integrated into Continental´s Automotive Systems Division. The company said the deal should be completed in the first half of 2006, and it is subject to various closing and regulatory conditions.
Conti said the transaction will increase its product portfolio and double overall sales of the automotive systems division in North America.
"This strategic move will further strengthen our position as a safety and systems supplier to the automotive industry and will give us a real push forward in automotive electronics," said Manfred Wennemer, Conti´s executive board chairman.