Vodafone is acquiring Cobra Automotive Technologies, an Italian auto electronics maker, for $196 million. The London-based carrier has agreed with the company’s main stakeholders to buy their 74% stake in the company and has an offer out to buy the rest. The deal will create “a new global provider of connected car services,” Erik Brenneis, Vodafone’s director of M2M told Reuters.
“We plan to invest in the business to offer our automotive and insurance customers a full range of telematics services,” Brenneis said.
Other carriers have moved into the connected car market. Verizon Communications made a similar move in 2012 when it paid $612 million for Hughes Telematics, which produces GPS tracking, communications and safety features for cars. Telefónica took a more traditional approach of providing connection services when it made a deal with Tesla in April to connect their high-end electric cars throughout Europe.
Vodafone has been turning its focus to new acquisitions since it sold off its interest in U.S. carrier Verizon Wireless earlier this year for $130 billion. The carrier purchased Spanish cable provider Ono for $10 billion in March.
More European telecom news:
Bouygues becomes first carrier to launch LTE-Advanced in France. After announcing it would cut about 1,500 jobs, roughly 17% of its workforce, France’s No. 3 mobile carrier has charged ahead to become the first to offer LTE-A services in seven French cities. The carrier plans to reach the 16 largest cities in France with the technology by September. Bouygues has been the center of acquisition speculation with competitors Iliad and Orange as potential buyers, but so far no deal has emerged.
Sources: Telefónica will win EU approval for E-Plus deal. After agreeing to allow some smaller companies to lease up to a fifth of its network, Telefónica is expected to receive the EU’s green light to purchase KPN’s German unit, E-Plus for €8.6 billion ($11.7 billion).
Telecom Italia investor group breaking up. Two investors, Mediobanca and Intesa, are seeking a “de-merger” of Telco, the company which owns 22.4% of Telecom Italia. A third investor, Generali, also announced that it intends to join the break-up effort. The largest investor in Telco is Telefónica with a 15% stake. The dissolution of Telco has particular implications for an ongoing conflict in Brazil where Telefónica and Telecom Italia operate competing carriers.
Europe and South Korea partner to develop “5G” technology. The agreement is said to help create a global definition of 5G and the partners will cooperate on 5G research. Research project proposals are expected to be launched in 2016.
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