UPDATE: Audi Confirms Ducati Acquisition

Volkswagen's Audi unit says it has agreed to buy motorcycle maker Ducati Motor Holding SpA from owner Investindustrial for an undisclosed price.

Audi says it aims to complete the deal as soon as possible, pending regulatory approvals. The companies did not say whether private equity firm Investindustrial would keep a minority stake in Ducati as its chairman hinted earlier this week.

News reports say Audi will pay €860 million, including the assumption of debt, for the Bologna, Italy-based company, which specializes in premium performance bikes.

Audi says Ducati's expertise in high-performance engines and lightweight construction makes the brand an "excellent fit" for its own brand and the rest of the VW Group. Skeptical analysts say there is little synergy between Ducati and the group's 10 car and commercial truck brands.

Completion of the Porsche acquisition will expand VW's brand portfolio to 12, a number Chairman Ferdinand Piech has called ideal. He has been eyeing the purchase of Ducati for some time. Piech has engineered a flurry of acquisitions, including truckmakers Scania AG and MAN SE, at a time when many competitors are shedding brands to simplify operations.

Last year Ducati sold 42,000 motorcycles built at its factories in Bologna and Thailand and generated €480 million in revenue. The company has about 1,100 employees. Bloomberg News says the privately held company boosted operating profit 39% to €93 million in 2011, resulting in a 19% profit margin.