Continental considers software takeovers after powertrain IPO
German supplier Continental is considering acquiring software makers after the flotation of its powertrain unit expected in the second half of 2019, its Chief Financial Officer Wolfgang Schaefer told a German newspaper
“We are currently in a position to pay up to 5 billion euros for one or more companies”, he was quoted as saying in the German newspaper’s Saturday edition, according to Automotive News.
“We want to expand our expertise in software. Today, already more than 60 percent of our automotive products are digitized or equipped with sensors,” he said, adding that one third of its 47,000 engineers already have a software or IT background.
Proceeds from the planned powertrain stock market listing, which is being carved out by year-end, would help Continental finance acquisitions.
Continental last month asked Bank of America, JP Morgan and Deutsche Bank to help it organize the flotation, which is expected to be one of the largest 2019 IPOs in Germany, people close to the matter have said.