Auto parts to software ecosystem: Does Aptiv and Wind River merger make sense?
The acquisition of Wind River by Aptiv is the largest automotive merger and acquisition (M&A) in 2022 so far. The big gainer of the deal is Aptiv. The IHS Markit market analysis suggests that the takeover of Wind River by Aptiv makes perfect marketing sense and allows Aptiv to widen its product and service portfolios within and outside the automotive industry. The market may witness similar approaches by other automotive tier-1 suppliers, as competition for software ecosystem ownership is becoming a critical factor.
Well-known auto parts maker Aptiv acquired automotive and IoT software developer Wind River on 11 January 2022. This is the first automotive acquisition of this year. This deal is the biggest since 2017 and the divergence of Delphi by Aptiv.