Schaeffler has signed a purchase agreement for the acquisition of Xtronic, although no purchase price has been disclosed.
The takeover of the Boblingen, Germany-based company is expected to be completed in June 2019, once all closing conditions have been met.
Xtronic is a technology partner which develops customer-specific software and electronics solutions for the international automotive industry.
The owner-managed company employs some 170 people at its locations in Boblingen and Wolfsburg, Germany and provides services and solutions in a range of areas, including automated driving applications, electric mobility, functional safety, as well as methods, tools and test systems.
Founded 20 years ago, Xtronic worked closely with Paravan on the development of the Space Drive drive-by-wire system and its customers include several unnamed automotive manufacturers and suppliers.
Xtronic will be integrated into the Schaeffler Group as a separate German private limited company. Its operational management will remain in the hands of its managing director and current co-owner, Daniel Schmid.
Xtronic will continue to focus on its relationships with external customers, while at the same time developing and providing solutions within the Schaeffler Group.
“After years of growth, we now see in Schaeffler the partner and owner to take the business forward and further globalise its market position,” said Schmid.
“Schaeffler’s expertise in product industrialisation and system integration and its financial capability open up completely new opportunities for Xtronic to scale its business model. Both companies have a strong innovation culture.”