NEW YORK (AP) — Auto parts supplier Visteon said Monday that it will buy Johnson Controls's automotive electronics business for $265 million.
Visteon said the business has about $1.3 billion in annual sales, which will give it about $3 billion in annual revenue from automotive cockpit electronics.
Johnson Controls has been selling businesses in automotive electronics and said it has received almost $1 billion from those deals.
The automotive electronics operation involved in the deal has about 4,800 employees and seven research and development centers in North America, Europe, and Asia. Its largest customers include Honda Motor Co., Ford Motor Co., BMW, Renault-Nissan, and PSA Peugeot-Citroen. The companies said the deal should close during the second quarter.
Visteon Corp., of Van Buren Township, Mich., expects $40 million in annual savings from the deal. It said the acquisition doesn't change its stock repurchase plans.
Visteon has also said it planned to sell its automotive interiors business. The company said it will sell that business in three separate deals.
Johnson Controls Inc. is based in Milwaukee, and it makes heating and ventilation systems for buildings.
Visteon shares rose $3.05, or 3.5 percent, to $88 in morning trading Monday. Shares of Johnson Controls rose 66 cents, or 1.3 percent, to $52.25.