Hella, the global automotive supplier, has successfully closed the sale of its front camera software business (including the associated testing and validation area) to Volkswagen.
Following approval by the relevant antitrust authorities and, the fulfilment of further contractual conditions, the Hella Aglaia subsidiary has been transferred to the Volkswagen Group’s Car.Software Organization – effective from February 1, 2021. The transaction is set to generate around €120 million in pre-tax income for Hella.
The sale of Hella’s front camera subsidiary was based on stringent portfolio management. Accordingly, Hella would have had to make extraordinarily large investments, combined with a large entrepreneurial risk, in order to achieve their internal targets in this area.
However, despite the transaction, Hella has said that they will continue to invest in key technologies used in autonomous driving – particularly those related to radar sensors and steering electronics. Likewise, the remaining activities at Hella Aglaia in the areas of energy management, lighting control, and people sensing will continue.
The subsidiary will be further strengthened through its management of Hella’s Global Software House, which was founded last year. The unit takes global responsibility for coordinating software activities across Hella to develop new, digitalized, business models.