If the all-cash deal is approved, Vienna-based TTTech, its management and 1,100 employees will join NXP's automotive arm.Dutch computer chip maker NXP said on Tuesday it has agreed to buy Austria's TTTech Auto for USD 625 million, to strengthen its automotive operations.
NXP is the biggest maker of chips for cars, while TTTech Auto makes safety-focused 'middleware' - software that helps a car's operating system integrate with applications, and roll out updates, while ensuring that critical functions are not affected.
"This acquisition combines NXP's automotive portfolio with a leading global player in safety software solutions," said NXP executive Jens Hinrichsen in a statement.
The company said the move was aimed at strengthening NXP's offerings as its carmaker customers increasingly view software, rather than hardware, as determining a vehicle's design.
Hinrichsen, the general manager of automotive embedded systems at NXP, said the buy would help the company become the "leading provider of intelligent edge systems" in cars.
If the all-cash deal is approved, Vienna-based TTTech, its management and 1,100 employees will join NXP's automotive arm.
