UPDATE 1-GM, Magna and Wipro team up for automotive software marketplace
(Adds details on investment value in paragraphs 3, 4 and 7)
March 5 (Reuters) - General Motors, auto parts supplier Magna and IT company Wipro said on Tuesday they were working together to create a sales platform to buy and sell automotive software.
The joint venture, SDVerse, will link the buyers and sellers through a digital platform, where the software's features and attributes can be listed.
Wipro, in a regulatory filing, disclosed an investment of $5.85 million, equating to a 27% stake in SDVerse. GM and Magna will hold a 46% and 27% stake, respectively.
The transaction is expected to be completed before the end of March.
The platform is in its development stage and is expected to feature hundreds of automotive software products and participants across the industry.
The announcement comes at a time when automakers are ramping up their tech investments to help create connected vehicles with advanced driver aids.
"The market for automotive software is expected to nearly double this decade, potentially outpacing the growth of software development talent pools," said Harmeet Chauhan, global head Wipro Engineering Edge, Wipro Ltd.
While the companies did not detail specific revenue targets, SDVerse will follow an annual subscription fee model and not charge any fee for buying or selling products.
GM, Magna and Wipro will hold seats on the board of SDVerse but the platform will operate independently. (Reporting by Nathan Gomes in Bengaluru; Editing by Shilpi Majumdar)
