The Venturi Formula E team will switch to Mercedes' electric power for the 2019/20 season and retain former F1 driver Felipe Massa and Edoardo Mortara as its drivers.
Last season, Venturi supplied the powertrains to the Mercedes-affiliate HWA outfit, but the Monaco-based squad will now use a complete rear-end package designed and developed by the German manufacturer's Brixworth HPP engine division.
The technology supply will comprise the cooling system, rear frame, rear suspension, dampers, software, onboard electronics and wiring, in addition to the brand-new powertrain.
"We are taking the expertise we've built up over the last decade and applying it to the new challenge of Formula E," said Andy Cowell, Managing Director of Mercedes-AMG High Performance Powertrains.
"Working together with Venturi Racing, we will be able to increase our rate of learning in our debut season, and what's more, with a well-established team, who have been part of the series since the very first year.
"The lessons learned and the technologies we are working on at the race track will also be incorporated into the development of road-going vehicles over time, so the entire Mercedes-Benz family will benefit as a result."
Venturi founder and president Gildo Pastor welcomed Mercedes-Benz to the Venturi family.
"Pairing our experience in high-performing electric vehicles with the racing pedigree of Mercedes is a significant step towards strengthening our position in a racing formula that is becoming ever-more-competitive," said Pastor.
"We're all excited about this new era for the team and I'm confident this will be the start of a great journey with our new colleagues in Stuttgart and Brixworth."
Since Formula E was launched in 2014, Venturi's track record includes one win and six podiums. The outfit's team principal is Susie Wolff, the wide of Mercedes motorsport boss Toto Wolff.