European software development services provider Luxoft Holding has acquired Swedish software maker Pelagicore AB for around US$25 million in a deal that bolsters its offerings in the automotive sector.
Gothenburg, Sweden-based Pelagicore develops and licenses open source software applications in the automotive infotainment industry.
Luxoft says the Swedish firm is a “thought leader” in the HMI space with deep expertise in open source technology. “Its product portfolio facilitates richer user experiences (UX) and user interfaces (UI) in line with the next generation of consumer electronics,” Luxoft stated in a press release.
Pelagicore is the co-founder of the newly announced, automotive-specific Qt automotive suite, and has a seat on the board of GENIVI, a nonprofit industry alliance committed to driving adoption of open source in-vehicle infotainment (IVI) software.
Luxoft can combine Pelagicore’s capabilities with its own to create technology solutions for other verticals too. “Pelagicore’s success in developing advanced engineering frameworks can enhance the value Luxoft brings to its clients in other verticals including telecom, consumer electronics and medical devices,” says Georg Doll, chief of the automotive unit at Luxoft.
Once the deal is finalized, Luxoft will set up a separate software unit for automotive clients, putting Pelagicore’s founders Alex Diebald and Mikael Söderberg in charge of development.
Luxoft has its roots in Russia, but it relocated most of its management team to Switzerland after the pro-Russian unrest in Ukraine in 2014. Today it has over 11,000 employees across 36 offices in 19 countries including South Africa and Eastern Europe.
Two years ago, it expanded its operation to Mexico with the launch of a delivery center in Guadalajara.