Key Takeaways
- General Motors, Magna International, and Wipro are teaming up to develop a platform for businesses to buy and sell automotive software.
- The companies said that the platform, called SDVerse, will offer hundreds of software products.
- GM will hold a 46% stake in SDVerse, while Magna and Wipro will each have 27%.
General Motors (GM), auto parts supplier Magna International (MGA), and information technology provider Wipro (WIT) are teaming up to develop a platform for businesses to buy and sell automotive software.
The three are forming a business-to-business (B2B) sales platform called SDVerse, which they said aims to “revolutionize the automotive software sourcing and procurement process by providing a matchmaking platform for buyers and sellers.”
The companies said that SDVerse is expected to offer hundreds of automotive software products.
Harmeet Chauhan, global head of Wipro Engineering Edge, said it’s anticipated the market for automotive software will nearly double this decade, “potentially outpacing the growth of software development talent pools.” He added that SDVerse will attempt to help solve that by “offering a wide range of benefits across the industry.”
Wipro said in a regulatory filing that its investment in SDVerse was $5.85 million, and that it would hold a 27% stake. Magna International also will have a 27% stake, while GM holds 46%.
The transaction is expected to be completed before the end of this month.
Shares of GM were 1% lower and American depositary receipts (ADRs) of Wipro were off 2.1% at 3:40 p.m. ET Tuesday, while Magna International shares ticked 0.5% lower.