Hella is selling its business with front camera software and the related activities in the area of testing and validation to the Car.Software Org, a wholly owned subsidiary of Volkswagen. Both companies have signed a corresponding agreement.
The transaction is expected to result in extraordinary income in the range of approximately 100 million Euro in the event of a successful closing. The business activities to be sold are located at the Berlin-based subsidiary Hella Aglaia. In the course of the sale, about half of the company’s employees are to be transferred to the Car.Software Org, which Volkswagen founded at the beginning of the year as a cross-brand unit for software development. The transaction is still subject to approval by the relevant antitrust authorities and is expected to close in the first quarter of calendar year 2021.
»The exit from the front camera software business is based on stringent portfolio management. This is based on our strategic cornerstones of technology leadership, market leadership and the fulfilment of certain financial key figures«, said Hella CEO Dr. Rolf Breidenbach. »If we cannot sustainably achieve one of these three criteria with a product, we will not pursue the corresponding business activities any further. In order to achieve our goals in the long term, we would have had to make extraordinarily high investments in the field of front camera software combined with a high level of entrepreneurial risk. We are therefore pleased to have found a strong partner in Volkswagen who will continue to develop these activities strategically.«
Hella Aglaia's other business activities in the fields of energy management, lighting control and people sensing are not affected by the sale. »We will continue to invest consistently in future automotive topics such as electromobility, automated driving, software and digitalization«, emphasized Dr. Rolf Breidenbach. With a newly founded Global Software House the supplier for example is further expanding its worldwide software competences. At the same time, the company continues to invest in essential key components for assisted and autonomous driving.
Hella Aglaia Mobile Vision GmbH, Hella KGaA Hueck& Co.