August 2, 2018 2:30 PM, EDT

Fiat Chrysler’s Magneti Marelli to Acquire Self-Driving Tech Startup

Magneti Marelli, a components business that is part of Fiat Chrysler Automobiles, plans to acquire a French startup focused on self-driving car technology.

A company news release said Aug. 1 that Magnetti Marelli, a supplier of electronics, automotive lighting and powertrains with about 43,000 employees, had signed an agreement to acquire all shares of StartMeUp, with closing expected in the last quarter of this year.

StartMeUp develops software that “will be a key enabler for autonomous vehicle.” It is used for “processing sensor’s signals, detecting and recognizing objects around the vehicle, allowing 3D environment building and object-movement tracking,” the release said.

The deal adds another piece to Magneti Marelli’s self-driving technology efforts, which include a stake in LeddarTech to develop lidar systems.

FCA did not release financial details of the agreement. The company has been working on a spin-off of Magneti Marelli.

The news service, citing analysts, said the stand-alone entity could be worth between $4.2 billion and $5.8 billion (3.6 billion and 5 billion euros).

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