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FRANKFURT - Volkswagen's luxury division Porsche AG has agreed to raise its stake in Rimac Automobili to 24%, the companies said on Monday, in a deal that values the Croatian electric hypercar maker at 795 million euros ($947 million).

Porsche AG first bought a 10% stake in Rimac in 2018, raising it to more than 15% a year later. Under the latest deal, it is buying a further 8.8% for 70 million euros.

"Rimac is excellently positioned in prototype solutions and small series," Porsche AG finance chief Lutz Meschke said in a statement. "Rimac is well on its way to becoming a Tier 1 supplier for Porsche and other manufacturers in the high-tech segment."

Since Porsche's first investment, Rimac's workforce has nearly doubled to 1,000 employees. It is collaborating with carmarkers including Hyundai, Kia and Aston Martin.

"Porsche has been a big supporter of our company since 2018, and it has always been a privilege to have one of the world's most iconic sports car brands be a part of Rimac." said Mate Rimac, the group's founder and CEO.

($1 = 0.8396 euros)