Schaeffler AG (acting via its subsidiary Schaeffler Technologies AG & Co) has signed an agreement to acquire Xtronic GmbH.

The parties have agreed not to disclose the purchase price, and the takeover of the Böblingen-based (Germany) company is expected to be completed in June.

Xtronic develops customer-specific software and electronics solutions for the international automotive industry.

The owner-managed company employs around 170 people at its locations in Böblingen and Wolfsburg, and it provides services and solutions in a range of areas, including automated driving applications, electric mobility and functional safety, as well as methods, tools and test systems.

It was founded 20 years ago and worked closely with Paravan on the development of the Space Drive drive-by-wire system.

Its customers include several well-known automotive manufacturers and suppliers.

Xtronic will be integrated into the Schaeffler Group as a separate German private limited company (GmbH), and its operational management will remain in the hands of managing director (and current co-owner) Daniel Schmid.

He said: “After years of successful growth, we now see in Schaeffler the perfect partner and owner to take the business forward and further globalise its market position.

"Schaeffler’s expertise in product industrialisation and system integration — along with its financial capability — open up new opportunities for Xtronic to ‘scale’ its business model.

"Both companies have a strong innovation culture.”

Matthias Zink, Schaeffler’s CEO (Automotive OEM) (www.schaeffler.com), said: “Following last year’s purchase of the Space Drive technology from Paravan and the takeover of Elmotec Statomat, our acquisition of Xtronic is the logical next step in implementing our long-term business strategy — and an excellent fit for our defined mergers and acquisitions strategy.

"Strengthening our software and electronics capabilities is vital to our ability to develop mechatronic solutions for ‘Mobility for tomorrow’.”