Continental AG has agreed to acquire Motorola’s automotive electronics business--controls, sensors, interior electronics and telematics--for approximately $1 billion in cash. The acquired business will be integrated into Continental's Automotive Systems division. The transaction is expected to be completed in the first half of 2006.

Continental’s Automotive Systems Division employs some 24,000 people worldwide and had sales last year of approximately $6.5 billion. Motorola’s automotive business employed 4,500 and generated about $1.6 billion in sales last year.

Continental executive board chairman Manfred Wennemer said the acquisition will about double sales for Continental’s Automotive Systems division in North America. It will add telematics technology to Continental’s product lineup in addition to increasing Continental’s capabilities in body and sensor electronics and powertrain and chassis controls.

A Motorola spokeswoman said Motorola is retaining “products and services that are more closely aligned to Motorola's ‘seamless mobility’ vision,” such as Bluetooth-enabled aftermarket devices for hands-free voice communication and mobile music streaming; location-based services for mobine phones; software for telematics control units; the iRADIO subscription music service, and the MOTODRIVE wireless network architecture, which supports federal vehicle infrastructure integration initiatives.