BorgWarner to acquire Delphi Technologies in all-stock transaction
BorgWarner Inc. and Delphi Technologies PLC announced that they have entered into a definitive transaction agreement under which BorgWarner will acquire Delphi Technologies in an all-stock transaction that values Delphi Technologies' enterprise value at approximately $3.3 billion.
BorgWarner says the acquisition would strengthen its electronics products, capabilities, and scale. The company adds that combining with Delphi Technologies is consistent with the company's "evolution toward the propulsion market of the future and would enable BorgWarner to maintain flexibility across combustion, hybrid, and electric propulsion (C-H-E)."
Following the close of the transaction, the combined company is expected to be one of the leading pure-play propulsion companies globally, serving light and commercial vehicle manufacturers and the aftermarket. The company states that new combined company would offer a unique, more comprehensive portfolio of industry-leading propulsion products and systems across combustion, hybrid, and electric, resulting in greater content per vehicle relative to today.
"This exciting transaction represents the next step in BorgWarner's balanced propulsion strategy, strengthening our position in electrified propulsion as well as our combustion, commercial vehicle, and aftermarket businesses," said Frédéric Lissalde, President and CEO of BorgWarner. "Delphi Technologies will bring proven leading power electronics technologies, talent, and scale that will complement our hybrid and electric vehicle propulsion offerings. As a combined company, we look forward to delivering enhanced solutions to our customers while driving increased value for our stockholders."
Bringing BorgWarner and Delphi Technologies together is expected to:
- Strengthen BorgWarner's power electronics products, capabilities, and scale. The combined company would offer customers a suite of integrated and standalone offerings of power electronics products (including high voltage inverters, converters, onboard chargers, and battery management systems) and capabilities (including software, systems integration, and thermal management).
- Enhance BorgWarner's combustion, commercial vehicle, and aftermarket businesses. Adding Delphi Technologies' commercial vehicle and aftermarket business reportedly results in more balance across light vehicles, commercial vehicles, and the aftermarket.
Timing and approvals
The BorgWarner/Delphi Technologies transaction is expected to close in the second half of 2020, subject to approval by Delphi Technologies' stockholders, the satisfaction of customary closing conditions, and receipt of regulatory approvals.
Management and headquarters
Following the closing of the transaction, the combined company will be led by Frédéric Lissalde, BorgWarner's President and CEO, and Kevin Nowlan, BorgWarner's CFO, and will operate as BorgWarner. The combined company will be headquartered in Auburn Hills, MI.
For more information, visit borgwarner.com.