The former owner of motorcycle company Ducati has bought a stake in Aston Martin Lagonda.

Italian private equity fund Investindustrial has signed a deal to invest £150m for a 37.5 per cent stake in the British sports car company. The deal cements Aston Martin's existing £100m a year product development programme for the next five years.

Mahindra and Mahindra was previously thought to be the front runner in the deal, offering a significantly greater cash injection. Although Investindustrial has relationships with AMG, a tie-in with Mercedes’ performance arm is not part of the deal. Investindustrial has significant contacts within the industry, according to a spokesman, who referred to Aston Martin's partnerships with other OEMs, including Ford and Toyota.

Investindustrial owned Ducati until earlier this year when it sold the company to Audi for $1.1bn.

Under the new deal, Investindustrial will become a shareholder alongside current majority shareholder Investment Dar and minority shareholders, Dr Ulrich Bez and David Richards. Investindustrial will be a minority shareholder, with four of the nine board seats.

Aston Martin chairman David Richards said: "I am delighted that Investindustrial has decided to become a major investor in Aston Martin. With the support of Investment Dar, we have made substantial progress over the past five years in laying the foundations for success as one of the world’s leading luxury sports car manufacturers. 

"Investindustrial’s new investment reflects and sustains the unique position of Aston Martin within the industry. With this partnership and the continued commitment of Investment Dar, we look forward to working with our shareholders as we realise our vision and exciting future plans."

Andrea C. Bonomi senior principal at Investindustrial said: "We are looking forward to working with the management and Investment Dar to achieve a similar transformation and rejuvenation that we achieved with Ducati, by expanding the model range and strengthening the dealership network, throughout the world."