Minda Industries, the flagship company of the UNO Minda Group, is to acquire Germany-based iSYS RTS, a leading developer of embedded systems and software to global vehicle manufacturers. The agreement, which is subject to customary closing conditions and regulatory approvals, is expected to be completed by the second quarter of FY2018.
iSYS RTS develops embedded systems as well as hardware and software components for global OEMs. The company offers engineering services and also manufactures automotive ECUs, with its areas of specialisation including ECUs for automotive body and comfort systems, Autosar ECUs, ECUs and software components for automotive lighting, interior lighting systems, electrical drive ECUs and development of HMI and infotainment applications.
Minda Industries states that with increasing electronic content per vehicle in the areas of body and comfort, automotive lighting and cockpit electronics, it has identified electronic control modules as one of the major product line for growth and expansion. This acquisition will provide the company access to iSYS RTS's technology and global customers, along with expanding its ECU offering and technology solutions in India and global markets.
According to the company, this acquisition will provide iSVS RTS the necessary capital infusion to fuel its growth and also provide the backing of a large Tier 1 supplier like Minda Industries and enable it to take on larger programs and expand its product and customer base. iSVS RTS will also benefit from the manufacturing footprint of Minda Industries in an emerging country like India and get access to Minda's Engineering centres globally.
"As part of the UNO Minda Group and with access to the company's resources, we can exploit our synergies beyond our core competencies. The synergies are expected to play out as we develop system solutions for automotive OEMs," said Georg Hutter, CEO, iSVS RTS.
After the completion of the transaction, iSYS RTS will become a subsidiary of Minda Industries and operate as an independent unit led by its existing management team. iSYS RTS will remain dedicated to serving and growing its target markets including automotive OEMs.
Commenting on the acquisition, N K Minda, chairman, UNO Minda Group, said, "iSYS RTS will be at the core of our controller business strategy, as we seek to improve footprints with customers in India and Europe. In addition, it will also help Minda Industries offer high-end cockpit electronics with premiumisation of vehicles."