Business
Delphi Automotive announced on Thursday it will buy British cable equipment maker HellermanTyton for $1.7 billion. Delphi said it expects HellermannTyton, which makes products for fastening, fixing, and protecting cables, to help it take advantage of increasing demand for vehicles that connect to the web and smart devices such as phones and tablets, reports Reuters. "With consumers now demanding more connectivity in their vehicles, electrical architecture is the enabler to that added vehicle content," said Delphi Chief Executive Kevin Clark.
The acquisition is the latest example of automotive suppliers moving beyond nuts and bolts into higher-value components such as electronics and software. In May, rival auto supplier Continental AG COGN.DE bought software company Elektrobit Automotive and last September, Germany's ZF Friedrichshafen pounced on U.S.-based TRW Automotive Holdings Corp, combining one of the largest makers of automatic gearboxes with a maker of automatic safety products.
Vehicle connectivity and methods to increase fuel efficiency are high-margin and high-growth areas in the industry. New safety and anti-pollution rules are forcing cars to become more intelligent so engine management and gear shifting systems are fuel efficient, and so vehicles can better perform semi-automated functions like accident avoidance and cruise control.
Delphi Automotive PLC on Thursday reported a 69 percent surge in second-quarter profit, beating Wall Street expectations, writes A.P. Delphi Automotive expects full-year earnings in the range of $5.30 to $5.40 per share, with revenue ranging from $15.2 billion to $15.6 billion.
