Dutch semiconductor company NXP announced Tuesday its plans to acquire TTTech Auto, an Austrian firm specializing in safety software for autonomous vehicles, in an all-cash transaction valued at $625 million. The acquisition aims to bolster NXP’s position in the growing market for software-defined vehicles (SDVs).
Founded in 2018 as a spin-off from TTTech Group, TTTech Auto has been a key player in the automotive industry’s push toward semi- and full-automation. The company develops MotionWise, a middleware platform that ensures seamless data flow between a vehicle’s various control systems, such as cameras, radars, and actuators. MotionWise is designed to meet safety compliance standards while supporting the integration of software from multiple suppliers.
“NXP and TTTech Auto have complementary strengths in advanced driver-assistance systems and automated driving systems,” NXP CEO Kurt Sievers said in a statement. “This acquisition accelerates our ability to provide next-generation solutions for the automotive sector, particularly in the areas of functional safety and real-time data processing.”
TTTech Auto has attracted substantial investment, including backing from AUDI, Samsung, and GE Ventures, as well as a $285 million funding round led by Aptiv in 2022. The company’s products are integral to the automotive industry’s development of safer, more automated driving systems.
The acquisition, which is subject to regulatory approval, will see the TTTech Auto management team and engineering staff join NXP and operate under the NXP brand. NXP’s market value has grown to $54 billion in recent years, positioning it well to capitalize on the automotive industry’s ongoing shift toward electrification and automation.
