The Chinese Hubei Henglong Automotive Systems Group, a wholly-owned subsidiary of China Automotive Systems (CAAS) has acquired a 40 percent interest in Swedish automotive technology company Sentient AB for a total price of $24.3 million, media Marketwatch reports.
CAAS is a leading supplier of power steering systems and components to China automotive industry, operating through 15 subsidiaries.
Sentient is a software company working with vehicle motion control and steering control software for the automotive industry. The company’s software solutions can be integrated with its proprietary designed hardware solutions including power packs (SW, ECU, motor, housing) and complete steering gear systems. Sentient currently holds 10 patents in steering, steer-by-wire, motion control, and braking. Sentient operates seven facilities within Sweden and an office in Suzhou, China.
In the transaction, the Chinese company Jingzhou WiseDawn Electric Car Co., Ltd. (Wisedarn) will transfer its 40 percent share in Sentient to Hubei Henglong in three installments of cash payments. Two directors of CAAS, Mr. Hanlin Chen and Mr. Qizhou Wu are the majority and minority owners of WiseDawn.