The acquisition of Cobra is in line with Vodafone's strategy to expand its machine-to-machine (M2M) capability beyond connectivity.
Erik Brenneis, Director of M2M, Vodafone said: "The combination of Vodafone and Cobra will create a new global provider of connected car services. We plan to invest in the business to offer our automotive and insurance customers a full range of telematics services."
Vodafone said it would offer 1.49 euros a share to buyout shareholders in Italian group. Cobra's majority shareholder Intek Group said in a statement it had agreed to tender its 51.4 percent stake in Cobra for 74.3 million euros.
The acquisition is expected to complete in the third quarter of 2014.