On Tuesday, Tesla (NASDAQ:TSLA) supplier Aptiv (NYSE:APTV) Plc reported that it is likely to acquire a majority stake in a unit of Italy-based Intercable for 595 million euros (USD 605.71 million). It would allow the auto parts company needed access to technology used in electric vehicles (EVs).

US-based Aptiv would own 85% stake in Intercable Automotive Solutions. The latter manufactures high-voltage busbars which carry greater electrical power than traditional cables. The company has manufacturing facilities in Asia as well as Europe.

It is to be noted that auto parts suppliers are increasingly investing in electric and battery technology for catering to the EV market, which could be worth USD 5 trillion over the next decade.

In January, Dublin-based Aptiv announced a multi-billion-dollar deal for US-based software developer Wind River for capitalising software-oriented vehicles and diversifing its revenue stream.

The deal for Intercable Automotive is likely to close before the year end. After this, the company would operate as a stand-alone business unit within Aptiv’s Signal & Power Solutions segment.

The said transaction is expected to add to Aptiv’s earnings next year. Goldman Sachs has served as financial adviser for the deal to Aptiv while Clifford Chance was the company’s legal adviser.