The German industrial group is buying Tass to combine both entities' software and simulation products.

In a move to reinforce its auto business, Siemens AG (SMAWF)  has agreed to buy Dutch self-driving software company Tass International for an undisclosed amount, Reuters reported.

The German industrial group is buying Tass to combine both entities' software and simulation products and later integrate those with electronic design capabilities from Siemens' recently acquired Mentor Graphics. Mentor sold to Siemens for $4.5 billion earlier this year.

Tass specializes in software that simulates complex traffic scenarios, validates autonomous driving and replicates advanced driver assistance systems in crash testing. Its annual turnover is around $32.3 million and it has 200 employees.

Siemens stock has traded up 6.9% since the start of the year.

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