Vodafone has agreed to buy an Italian provider of electronics services to the car industry for €145 million as it branches out into connecting devices such as cars and other machines.

The British company said it had agreed to buy Cobra Automotive Technologies, a provider of security, telecommunications and vehicle tracking.

Vodafone, like other mobile operators, is looking to expand into the so-called machine-to-machine industry to connect millions of devices, as a new source of revenue.

Cobra's majority shareholder Intek Group said in a statement it had agreed to tender its 51.4 per cent stake in Cobra for €74.3 million.

Shares in Cobra closed on Friday at €0.987 each and the offer price represents a 50.9 per cent premium compared to that level.

(Reuters)