MILAN, (Reuters) – Brembo might consider purchasing tech startups to improve the software content its premium brakes. Chief Executive Daniele Schillaci stated this as Brembo unveiled its new braking system.

This company has many customers, including Ferrari (NYSE:), Tesla(NASDAQ:), as well as several Formula One teams. They presented ‘Sensify,’ a groundbreaking braking system which can be used independently by each of the vehicle’s four wheels.

It also includes a digital “brain”, which uses data to adjust braking for individual driving styles or changing road conditions.

Schillaci is an industry veteran who has worked at Nissan Motor (OTC:) Motor, and Toyota. He said that mechanics are still dominant in the Sensify software, as opposed to software content.

He said that “but soon the mechanics and the software contents will soon become equivalent, and by the middle of the decade software would be predominant in brake systems.”

“That’s why we include tech companies among our eventual M&A targets, not necessarily large companies but also startups which could be interesting for us,” Schillaci said.

Brembo has agreed in recent years to purchase SBS Friction (a Danish manufacturer of motorbike brake pads) and J.Juan, the Spanish maker of motorcycle brakes.

Schillaci claimed that Brembo did not seek acquisitions to boost revenues.

“We look at M&A as a way to make our core business thrive. “Recent deals are a sign that we desire vertical integration in our work,” he stated.

The company plans to open its first high-tech lab in Silicon Valley, California by the end of the year. This will help accelerate the company’s digitisation strategy.

“We’ll be in California to acquire know-how on latest artificial-intelligence technologies, but also to look around, if we see there are startups catching our attention,” Schillaci said.

Brembo shareholders approved a loyalty sharing scheme which would permit its family control to continue to hold that position, as it seeks acquisitions.

Schillaci claimed that Brembo is in negotiations with an unknown automaker to provide Sensify technology to its vehicles starting from 2024. Schillaci also stated that the system will become a “standard feature” for premium platforms by 2030.

According to Schillaci, all components in the Sensify system were designed internally. Brembo said that partnerships are being made with other providers, “to expand our knowledge and speed up production scaling-up as needed”.