It has been confirmed that Italian private equity group Investindustrial has purchased a 37.5 percent stake in Aston Martin, providing 150 million pounds (approximately $240.4 million) in the form of a capital increase.

Aston Martin, together with its new investor, as well as existing shareholder Investment Dar,  intends to invest more than half a billion pounds ($800 million) in a new product and technology program over the next five years.

Another potential investor, Indian automaker Mahindra & Mahindra backed out of the bidding war with Investindustrial this week.

It’s not clear what Aston Martin’s next step is, though for now the company will likely avoid a credit downgrade watch by investment ratings agency Moody’s Investors Service, which warned that the automaker’s cash flows turned negative in the third quarter of the year.

Part of Aston Martin’s future strategy is expansion into new markets, particularly China, where Aston Martin is looking to expand beyond sports cars with new models falling under its historic Lagonda brand.

Additionally, Investindustrial is believed to have been chosen over Mahindra due to its links with Mercedes-Benz’s performance brand AMG, which was tied to Investindustrial-owned Ducati through a promotional deal before the Italian motorcycle manufacturer was sold to Audi earlier this year.

AMG already sells engines to rival firms like Pagani and it's possible it could become a supplier to Aston Martin. Mercedes-Benz at one point was in talks with Aston Martin over a deal to share everything from platforms to engines and even hybrid technology.

“I am delighted that Investindustrial has decided to become a major investor in Aston Martin,” the automaker’s chairman David Richards said in a statement. “With this partnership and the continued commitment of Investment Dar, we look forward to working with our shareholders as we realize our vision and exciting future plans.”