Delphi Automotive has made a bid to acquire UK-based HellermannTyton Group for $1.7bn, in a move which looks to expand its product portfolio within the connected vehicle solutions market.
Delphi said that the acquisition is also expected to strengthen its electrical architecture market and improve its relationships with other global automakers.
The acquisition is also likely to help Delphi grow in HellermannTyton’s adjacent industrial end markets including aerospace, defence, and alternative energy.
HellermannTyton develops cable management solutions for vehicles and products that are mission-critical in nature and facilitates development of vehicles that connect to the web and smart devices.
Delphi is not the only auto supplier trying to cash in on connected vehicles, last year Continental, one of Delphi’s rivals, purchased Elektrobit Automotive to expand its presence in connected vehicle market.
Delphi president Kevin Clark said: "With consumers now demanding more connectivity in their vehicles, electrical architecture is the enabler to that added vehicle content.
"HellermannTyton positions Delphi to provide customers with an even broader portfolio of highly engineered and customised connection systems and cable management solutions.
"By leveraging the combined capabilities of both companies, we will be able to capitalize on additional growth opportunities and create significant value for our customers and shareholders."
Apart from HellermannTyton, the auto supplier is also acquiring Ottomatika and Quanergy to boost its active safety and automated driving capabilities.
The company will also buy a minority interest in Tula Technology, which develops software for cylinder deactivation technology, helping save fuel.
Delphi chief technology officer Jeff Owens said: "These companies bring unique and strategic capabilities in software and sensing technology, strengthening our portfolio in active safety and fuel economy, two critical long-term growth areas for the automotive market."