Dana Inc. announced that it has sold its Pi Innovo unit to private‑equity firm MiddleGround Capital, a transaction that removes a non‑core software business from Dana’s portfolio and reinforces the company’s focus on high‑margin driveline solutions for the automotive and commercial vehicle markets.
Pi Innovo, headquartered near Detroit, Michigan, designs and develops embedded software and electronic control units for electrified vehicle propulsion, clean‑fuel, and hybrid applications. The unit will merge with MiddleGround’s existing portfolio company New Eagle, a move that is expected to create a stronger platform for electronic control systems and software solutions in the automotive and aerospace sectors.
The divestiture is part of Dana’s “New Dana” transformation, which seeks to streamline operations, reduce complexity, and free capital for debt reduction and shareholder returns. The sale follows the January 2 2026 closing of Dana’s Off‑Highway business to Allison Transmission for $2.7 billion, a transaction that also aimed to strengthen the balance sheet and focus the company on its core on‑highway driveline business.
Dana reported preliminary 2025 sales of approximately $7.5 billion and an adjusted EBITDA of $600 million, a margin of 8 % of sales. While the Pi Innovo sale price was not disclosed, the transaction is expected to unlock value from a non‑core asset and improve Dana’s financial position by reducing debt and providing capital for shareholder returns. The sale’s financial impact on Dana’s revenue and profitability is not yet quantified, but the divestiture is a key milestone in the company’s transformation strategy.
Management emphasized that the sale aligns with Dana’s commitment to focus on core high‑margin driveline solutions and to streamline its operations. MiddleGround Capital, which specializes in industrial and specialty distribution businesses and has previously acquired New Eagle, aims to integrate Pi Innovo into its portfolio to enhance its mobility‑focused platform. The transaction signals Dana’s continued execution of its “New Dana” strategy and its intent to strengthen its balance sheet and focus on high‑margin, high‑technology driveline solutions.
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