BorgWarner, a powertrain solutions company based in U.S., is set to acquire Delphi Technologies in all-stock transaction to strengthen propulsion systems leadership. The two companies 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.
The acquisition would strengthen BorgWarner’s power electronics products, capabilities and scale. Combining with Delphi Technologies is consistent with BorgWarner’s evolution towards the propulsion market of the future and would enable BorgWarner to maintain flexibility across combustion, hybrid, and electric propulsion (C-H-E).
Under the terms of the agreement, which has been approved by the boards of directors of both companies, BorgWarner stockholders are expected to own approximately 84% of the combined company, while current Delphi Technologies stockholders are expected to own approximately 16%.
The acquisition will Strengthen BorgWarner’s power electronics products, capabilities and scale, creating a leader in electrified propulsion systems that is well-positioned to take advantage of future propulsion migration. It will also enhance BorgWarner’s combustion, commercial vehicle and aftermarket businesses.
Source: BorgWarner
