LEA Lear Corp

Lear Corp. is moving into autonomous-vehicle systems with the acquisition of a small Michigan software company, the latest maneuver the auto supplier has taken to expand from making traditional car parts to making bets on technology that could disrupt the car business.

Lear, known best as an automotive seat maker, said Monday it acquired Troy, Mich.-based Arada Systems, which specializes in vehicle-to-vehicle and vehicle-to-infrastructure communications. Financial details of the cash purchase weren't disclosed.

Arada employs about 45 people globally.

U.S. auto sales are near record highs and auto-parts makers have reaped big profits following financial restructurings last decade. Flush with cash, suppliers have been looking for acquisitions that can help them provide the technology that allows vehicles to become more capable of driving themselves. Executives of bigger auto suppliers have said that smaller tech companies are expensive to buy but necessary to own.

Among the bedrock technology needed are systems allowing vehicles to communicate with other vehicles or read roadway markings in order to maneuver without the aid of a driver. General Motors Co., the largest U.S. auto maker by sales, will be the first to introduce vehicle-to-vehicle technology with the launch of a new Cadillac next year.

While dominant in seats, Lear has been expanding its electronics business line with the goal of supplying the "electronic backbone" of vehicles. It has thus far specialized in electrical distribution.

Arada's expertise is in short-range communications and wireless protocols such as global positioning. Lear plans to meld Arada's work with Autonet Mobile, a California-based company it purchased in August that focuses on technology that allows dealers to communicate with cars as they drive.

The dealer technology is in high demand as auto makers look for more ways to digitally update vehicles or fix software problems.

Write to Jeff Bennett at jeff.bennett@wsj.com

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(END) Dow Jones Newswires

November 30, 2015 20:15 ET (01:15 GMT)

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