SAP will pay $9 billion to acquire U.K. automaker Audi for $24 billion, the company announced today.
The deal is expected to close next week, a person familiar with the matter said, adding that the two companies will be led by chairman and chief executive officer David Loh.
It was not immediately clear when the deal was expected to be completed.
The Audi acquisition will create a new global automotive and automotive solutions group, according to a statement from SAP.
The group will focus on integrating Audi products with SAP software.
It will also build SAP products for automotive, aviation and consumer applications.
Audi will retain its 25% stake in the group, and it will remain a fully-independent entity, said the statement.
Loh, an investor in the company, will become CEO, and Audi will retain the existing chairman, who will continue to serve as chairman.
The sale is a significant milestone for the company as it looks to make acquisitions in the future.
In March, the automaker agreed to acquire Swiss company U.R.I.S., a digital mobility company, for $5.8 billion.
In October, the firm announced a $9 million funding round led by Chinese state-owned lender CITIC Capital.LOH, who has led SAP’s automotive and aviation software division for nearly three decades, was named chief executive of Audi in November after serving as chief executive and chairman of SAP’s Automotive Solutions division.