Porsche Automobil Holding SE acquired a 10-percent stake in Inrix for $55 million. The acquisition is Porsche SE’s first investment since failing to acquire Volkswagen years ago, a transaction that backfired on the company. Philipp von Hagen, the Porsche SE board member responsible for investment management, remarked that in a statement, that connectivity between cars and infrastructure is “one of the important megatrends” in the auto industry.
He noted that Porsche SE sees a huge potential in the segment. Inrix is a traffic information provider in the United States. Earlier this year, Porsche SE disclosed plans to spend the bulk of its cash pile – pegged at EUR2.54 billion ($3.3 billion) at June 30, 2014 -- on acquisitions.
Porsche SE chief executive Martin Winterkorn – who is also CEO of Volkswagen -- said in March that the company looked at over 24 potential takeover targets 2013, but high valuations helped prevent an agreement from happening sooner.
The company has been seeking to acquire assets related to the auto industry like drive train systems, material and safety technology. Its sole directly held asset is a 50.7-percent stake in Volkswagen, which was part of an agreement to the sale of the Porsche AG brand to VW in 2012.