Tesla supplier Aptiv to buy 85% stake in Intercable unit in EV tech push

Tesla supplier Aptiv Plc said on Tuesday it would acquire a majority stake in a unit of Italy' Intercable for 595 million euros ($605.71 million), allowing the auto parts company access to technology used in electric vehicles (EVs).

US-based Aptiv will own an 85% 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 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 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 within Aptiv's Signal & Power Solutions segment.

The transaction is expected to add to Aptiv's earnings next year.

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