Dutch chipmaker NXP has entered into a definitive agreement to acquire TTTech Auto, an Austrian technology firm, in an all-cash transaction valued at $625m.
The deal forms part of NXP’s strategy to bolster its capabilities in the Software-Defined Vehicle (SDV) market.
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TTTech Auto specialises in developing middleware that helps integrate automotive operating systems with various applications while ensuring critical functions remain unaffected during updates.
The company’s expertise in managing complex software systems for automotive safety will complement NXP’s existing hardware solutions.
Pending regulatory approval, the acquisition will bring approximately 1,100 engineers and TTTech Auto’s intellectual property and assets into NXP’s automotive division.
The company has stated that TTTech Auto will continue serving its current customers and expanding its presence under the NXP brand.
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By GlobalDataNXP executive vice president and general manager of analog & automotive embedded systems Jens Hinrichsen said: “This acquisition combines NXP’s automotive portfolio with a leading global player in safety software solutions.
“The inclusion of TTTech Auto’s software into the NXP CoreRide solution further strengthens NXP’s automotive value proposition and accelerates the automotive industry’s transformation to software-defined vehicles. NXP CoreRide enables automakers to deploy their best-in-class, differentiated vehicle platforms more efficiently, faster, and safely.
“Our acquisition of TTTech Auto is the next big step in NXP’s journey to become the leading provider of intelligent edge systems in automotive and Industrial IoT.”
The automotive industry is currently experiencing a shift from traditional hardware-based designs to platform-based SDVs, which feature advanced interconnected hardware and software systems.
This shift will enable feature upgradability, data-driven services, and native cloud development.
The SDV market is expected to achieve 45% penetration of global auto production by 2027, with a compound annual growth rate (CAGR) of 48% from 2024 to 2027.
In March 2024, NXP introduced its NXP CoreRide platform to address this market need and support car manufacturers in the transition to SDVs.
The CoreRide platform, built on NXP’s S32 vehicle compute, networking, and system power management, addresses hardware and software integration challenges, streamlining complexity, scalability, and cost.
The integration of TTTech Auto’s safety and software capabilities will enhance the hardware/software integration benefits for NXP CoreRide partners, thereby streamlining SDV development for automakers.
TTTech Auto chief executive officer Dirk Linzmeier commented: “The emergence of intricately connected and adaptive frameworks in SDVs highlights the need for middleware to tackle challenges in integration, safety and scalability.
“NXP and TTTech Auto both clearly recognise this need and share the same vision for SDV transformation. Together, MotionWise and NXP CoreRide empowers automakers with a robust SDV foundation, ensuring seamless coordination of diverse systems that help automakers deliver innovative features while maintaining reliability and safety at scale.”
