Croatian electric supercar maker Rimac is taking over French manufacturer Bugatti in a deal reported to be worth millions of euros.

Rimac Automobili said Germany’s Volkswagen Group, including the Porsche division — which owns a majority stake in Bugatti — plans to create a new joint venture called Bugatti-Rimac.

The Croatian firm announced on Monday that it will combine forces with Bugatti to “create a new automotive and technological powerhouse”.

Rimac has progressed in 10 years from a one-man garage start-up to a successful company that produces electric supercars.

Mate Rimac, who founded the company in 2009, said the venture is an “exciting moment” and called the combination of the companies “a perfect match for each other”.

Porsche will own 45% of Bugatti-Rimac while Rimac Automobili will hold the remaining 55%, according to Croatian media reports. Financial details of the deal were not published.

Bugattis will continue to be assembled in eastern France, where the company was established in 1909. The vehicles will use engines developed and made in Croatia.

“In an industry evolving at ever-increasing speed, flexibility, innovation and sustainability remain at the very core of Rimac’s operations,” the company said.

“Uniting Rimac’s technical expertise and lean operations with Bugatti’s 110-year heritage of design and engineering prowess represents a fusion of leading automotive minds.”