Visteon Corporation has completed the acquisition of the automotive electronics business of Johnson Controls in a $265 million cash transaction.
The acquisition is expected to enhance Visteon’s competitive position in the vehicle cockpit electronics segment by strengthening its global scale, manufacturing and engineering footprint and product portfolio.
The combined global electronics enterprise has more than $3 billion in annual revenue and supplies nine of the world’s 10 largest vehicle manufacturers.
The automotive electronics business acquired from Johnson Controls builds driver information, infotainment, connectivity and body electronics products. The deal involves about 5,000 employees, including about 1,000 engineers, electronics specialists and designers in Europe, Asia and North America.
Timothy D. Leuliette, Visteon CEO and president, said the acquisition, “solidifies cockpit electronics as one of Visteon’s two high-growth core growth businesses – along with vehicle thermal management systems.”
He said acquiring Johnson Controls automotive electronics business gives Visteon the worldwide scale and cost efficiency to support new global programs from automakers, and “elevates Visteon into the top tier of companies accelerating connected car technology.”
Martin T. Thall, Visteon executive vice president and president, Electronics, said the acquisition marks the creation of a “major player in the automotive electronics industry.”
He added that Visteon’s new electronics enterprise has the “market position and innovation to become the leading technology company in the automotive sector. We are developing solutions that combine the best technology from the fast-paced consumer electronics industry and the automotive world."
In the fiscal year ended Sept. 30, 2013, the business acquired by Visteon generated approximately $1.3 billion in revenue and about $58 million in EBITDA (earnings before interest, taxes, depreciation and amortization).
