AUDERGHEM, Belgium—Trucking parts supplier Wabco Holdings Inc. confirmed March 28 that it would sell itself to German rival ZF Friedrichshafen for more than $7 billion.
The all-cash deal is for $136.50 per share and represents a 13 percent premium to Wabco's closing price of $120.75 on Feb. 26.
Last month, Reuters reported that ZF had held takeover talks with Wabco, as the unlisted company seeks to overhaul its business for an era of self-driving trucks.
Wabco, based in Brussels, specializes in braking control systems and other safety technologies for commercial vehicles. Last month Wabco reported record annual sales and earnings, posting net income of $418 million on revenue of $3.83 billion. It employs about 16,000 people in 40 countries.
Following the acquisition, ZF expects to generate about $44 billion a year in revenue.
"We believe that, together with Wabco, ZF can form the world's leading integrated systems provider for commercial vehicle technology, creating long-term value and security for its customers, employees and owners," ZF CEO Wolf-Henning Scheider said in a statement. "For ZF, the acquisition of a specialist and leader for commercial vehicle braking systems means adding a stable and growing business segment and enables our existing commercial vehicle division to expand its expertise in vehicle dynamics control.
"This will create the foundation for ZF to offer comprehensive systems for safe and automated mobility solutions for passengers and goods to our customers."
ZF has done large acquisitions in the past and in 2014 bought TRW Automotive for $13.5 billion to expand into the potentially lucrative self-driving car market. Earlier in March, it purchased a majority stake in mobility provider 2getthere.
Previously, ZF has said it plans to invest more than $13.6 billion into e-mobility and autonomous driving.