Bosch is set to take a 5% stake in digital mapping and location services company HERE Technologies.
The German engineers believes the acquisition will help its data-based services, with Industry 4.0 technologies such as automation in manufacturing and IoT a priority for the company.
HERE's systems are also expected to aid the introduction of self-driving vehicles, though Bosch's leadership insists that the partnership will bring a much wider range of benefits.
"Bosch is more than cars," says Dr. Volkmar Denner, chairman of the board of management of Robert Bosch GmbH.
"Industry 4.0, smart homes, and smart cities are rapidly growing areas of business for us, in which establishing and expanding data-based services will result in synergies with HERE."
HERE, which has also agreed to an identical stake acquisition from Continental, has produced a mapping service that claims to be accurate to a matter of centimetres. It already has investment from the likes of BMW and Daimler.
Edzard Overbeek, its CEO, added: "We are delighted to have brought on board a strong partner like Bosch, with its broad-based expertise in both the automotive and Internet of Things sectors."