Lear Looks for Software Acquisitions

Lear Corp. CEO Matt Simoncini tells Bloomberg News the company is on the hunt for acquisitions of as much as $1 billion to bolster its electrical products unit.

Simoncini says the company is targeting software, data encryption and cloud computing capabilities.

Bloomberg notes that Lear's automotive seating business generates about two-thirds of the company's revenue. But the electrical unit contributed nearly half of Lear's operating earnings last year.

Simoncini says Lear's interest in software-related skills is driven less by profit margins and more because of the strong growth potential they represent. "The industry is exploding in that sub-segment" as the industry shifts from moving electricity to moving data, he tells Bloomberg.