Volkswagen is taking over a majority stake in the Swedish telematics specialist WirelessCar from its rival Volvo, the German carmaker announced on Wednesday, in a further step towards providing connectivity for its vehicles.
Volkswagen's total stake will amount to 75.1 per cent. The acquisition is expected to be completed in the first half of 2019. The takeover must still be approved by antitrust authorities.
The purchase price amounts to just under 110 million euros, according to Volvo.
Volkswagen had previously announced a strategic partnership with the software giant Microsoft for the development of a cloud-based platform. WirelessCar's technology will contribute to a safe and stable data exchange between the platform and the cars' operating system, VW said.
Established in 1999, the Volvo subsidiary employs around 370 IT experts around the world.
Volkswagen had announced in mid-November that it would invest 44 billion euros in digitalisation, autonomous driving and e-mobility over the next five years. From 2020, more than 5 million fully connected VW cars are meant to enter the market yearly.
Other carmakers are also planning to increasingly shift their business models from vehicle sales to digital services.
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