German-based Audi AG has agreed to purchase Ducati Motor Holding S.p.A, a sport motorcycle manufacturer based in Italy for a reported $1.1 billion. Ferinand Piech, chairman of Volkswagen, Audi's parent company, expressed an interested in buying Ducati several years ago, before it was purchased by the current owner, Investindustrial. Ducati will be the 11^th brand owned by Volkswagen, which also owns Lamborghini, an Italian sports car manufacturer. It is also in the process of integrating Porsche fully into the company.

The Ducati purchase helps Audi with its growth strategy, which includes adding lightweight engines. These engines are helping automakers access technology needed to get the greatest amount of power out of the smallest engines to meet the more stringent fuel economy standards in the U.S. "Ducati is known worldwide as a premium brand among motorcycle manufacturers and has a long tradition of building sporty motorcycles. It has great expertise in high-performance engines and lightweight construction, and is one of the world’s most profitable motorcycle manufacturers," said Rupert Stadler, Chairman of the Board of Management of Audi AG in a statement announcing the purchase.

The move also gives Audi an opportunity to reach the motorcycle segment, similar to its competitor BMW, which makes motorcycles under the BMW and Husqvrana brands.