Visteon said that it has completed the acquisition of the automotive electronics business of Johnson Controls.
According to a release from Visteon, the two companies announced plans for the $265 million cash transaction on Jan. 13.
The company noted that the combined global electronics enterprise has more than $3 billion in annual revenue, with a No. 2 global position in driver information and above-average growth rates for the cockpit electronics segment, supplying nine of the world's 10 largest vehicle manufacturers.
"This acquisition is a milestone in Visteon's transformation, which we are confident will greatly benefit our customers, investors and new and existing employees around the world," said Timothy D. Leuliette, Visteon CEO and president. "As a cornerstone of our value creation plan, this transaction solidifies cockpit electronics as one of Visteon's two high-growth core growth businesses - along with vehicle thermal management systems, in which we hold the No. 2 position globally."
The business acquired from Johnson Controls provides automakers with driver information, infotainment, connectivity and body electronics products. The transaction involves about 5,000 employees, including approximately 1,000 engineers, electronics specialists and designers in Europe, Asia and North America.
In the fiscal year ended Sept. 30, 2013, the business acquired by Visteon generated approximately $1.3 billion in revenue and about $58 million in EBITDA (earnings before interest, taxes, depreciation and amortization).
Advising Visteon on the transaction were Rothschild and Skadden, Arps, Slate, Meagher & Flom.
Visteon is a global automotive supplier.
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