Auto parts manufacturer Johnson Controls has entered into a definitive agreement with Visteon to offload its automotive electronics business for $265m.
As a part of the deal, Visteon will acquire Johnson Controls' instrument cluster, infotainment, display, and body electronics products.
Previously, the company divested the HomeLink product portion of its electronics portfolio to Gentex Corporation in September 2013.
The deal will complete Johnson Controls' divestiture of the automotive electronics business which in aggregate realized total proceeds in line with original expectations of over $965m.
The company noted that it has chosen to move away from automotive electronics as part of its broader strategy to focus on core businesses and reallocate capital to further diversify its portfolio and maximize shareholder value.
The acquisition is subject to certain regulatory and other consents and approvals and is expected to be completed in the second quarter of 2014.
Johnson Controls chairman and CEO Alex Molinaroli said: "Visteon is a good strategic fit for the business and will provide the right level of commitment and the best long term value for our customers and employees."
Visteon is a global automotive supplier that designs, engineers and manufactures components and systems for vehicle manufacturers worldwide through businesses including Visteon Electronics, Visteon Interiors and Halla Visteon Climate Control.
