Magna_electronicsTier supplier Magna International is to buy Telemotive, a supplier of automotive electronics equipment and services, for an undisclosed sum.

Subject to regulatory approval, the deal is expected to close in the second quarter of 2016 and will allow Magna to integrate Telemotive’s five German facilities into its vehicle engineering and contract manufacturing unit, Magna Steyr, based in Graz, Austria.

"This acquisition strengthens our position to [let us] not only help customers meet today's challenges, but also those of the ‘car of the future’, including the increased integration of electronic vehicle systems," said Karl-Friedrich Stracke, president of Magna Steyr Contract Manufacturing and Engineering. "We are excited to combine our holistic vehicle engineering knowledge with Telemotive's electronics know-how."

That know-how covers such areas as bus systems, infotainment, connectivity, driver assistance and vehicle diagnostics. Telemotive’s provision of services includes systems integration, project management, technology consulting, and hardware and software development. Customers include BMW, Audi, Daimler, Porsche and VW, along with tier suppliers.

Günther Apfalter, president of Magna Europe and Magna Steyr said: "In today's era of digitisation, it is critical for suppliers like Magna to have engineering expertise in these core areas. As the car evolves from primarily mechanical to more electronic systems, we are in a unique position, with deep systems knowledge and full vehicle electronics expertise, to continue to deliver innovative solutions to the market."

The Magna Steyr contract assembly plant currently produces several models, including the Mercedes-Benz G class for Daimler, Mini models for BMW and the Peugeot RCZ for PSA Group. This year, however, it is expected to end Mini output and instead to begin producing the BMW 5 series. The contract manufacturer is also set to add a Jaguar Land Rover model by 2017.

Along with the Graz assembly plant, Magna Steyr has a number of global engineering and manufacturing locations, including for a fuel systems division in Austria and Germany, as well as further parts assembly locations in France and China.