Continental to Buy Elektrobit Software Unit for $680 Million

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Continental AG plans to buy Elektrobit Oyj’s automotive-software business for 600 million euros ($680 million) as Europe’s second-biggest maker of car parts and tires creates systems to enable automated driving. Elektrobit stock surged to a 14-year high.

Elektrobit, which will change its name to Bittium Oyj once the deal is complete, will pass most or all of the proceeds from the cash-only deal to shareholders, the Oulunsalo, Finland-based maker of software and hardware said in a statementBloomberg Terminal Tuesday. Investors holding 46 percent of Elektrobit stock have already agreed to the deal.