Volvo Cars has taken 100 per cent ownership of its autonomous driving (AD) software development subsidiary, Zenseact, as part of continued restructuring. Previously the company owned 86.5% in a joint venture with Ecarx, headquartered in China, and has paid $115m for the remaining stake. This values the subsidiary at $851m, a key marker in the value of AD software firms…

The acquisition of the 13.5 per cent stake is a strategic step to owning more of the software powering key functionality going into future cars and supports Volvo Cars’ strategic direction to be a leader in new technology, backed by Chinese car maker Geely.

The deal simplifies Zenseact ownership, making the AD software company a fully owned subsidiary that will operate as a standalone company and lead development of safety-, advanced driver assistance- and autonomous driving technologies for introduction first in Volvo and Polestar cars.