Delphi Automotive PLC (NYSE: DLPH) has acquired the HellermannTyton Group PLC (LSE: HTY), a leading global manufacturer of high-performance and innovative cable management solutions, for £1.07 billion ($1.644 billion) on a cash and debt-free basis.

“This transaction strengthens Delphi’s leadership position in the automotive electrical architecture market, while also providing growth opportunities in HellermannTyton’s adjacent industrial end markets,” said Kevin Clark, Delphi president and CEO. “The combined capabilities will allow Delphi to further capitalize on future growth trends while creating significant value for our customers and shareholders.”

Delphi expects the transaction to be 15 cents accretive to earnings per share starting in 2016, excluding one-time expenses for integration.

“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 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,” said Reuters. “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,” it added.

Delphi Automotive wants car shoppers to become familiar with “vehicle-to-everything” (V2E) technology, a futuristic package of software and hardware that will be showcased at January’s 2016 Consumer Electronics Show (CES). “Delphi made headlines earlier this year when a specially outfitted Audi SQ5 SUV completed the first coast-to-coast trip ever taken by an automated vehicle,” said Rick Kranz, a correspondent at automotive industry expert Edmunds. “Fully automated or self-driving cars are not expected to hit dealerships until around 2020. Google, Nissan, Mercedes-Benz, Ford and Audi are all working on self-driving vehicles and their components.”

“Highlights of the new V2E technology include a technology that uses a special chip located in a pedestrian’s smartphone to alert the Delphi vehicle to pedestrians who are not paying attention to traffic as they use their phone. Delphi also tackles the problem of blind corners,” Kranz commented further. “The V2E system provides information to the driver when the car approaches streets that intersect at strange angles, thus limiting the ability to see opposing traffic. Vehicles equipped with the V2E technology can also anticipate red and yellow traffic lights and detect when an adjacent car abruptly decides to get into the same lane. New ride-sharing technology gives a driver’s friends and family the ability to know a driver’s location so that a ride can be requested.”

HellermannTyton Group PLC manufactures and distributes cable management solutions for fastening, identifying, insulating, protecting, organizing, routing, and connecting components in electrical, automotive, and datacom and other markets worldwide. The company is based in Crawley, United Kingdom.

Delphi Automotive is a leading global technology company for automotive and commercial vehicle markets delivering solutions that help make vehicles safe, green and connected. Headquartered in Gillingham, U.K., Delphi operates technical centers, manufacturing sites and customer support services in 33 countries. The company has a market capitalization of $23.38 billion.

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