BorgWarner acquires Delphi Technologies

January 28, 2020 //By Christoph Hammerschmidt
BorgWarner acquires Delphi Technologies
Automotive powertrain technology supplier BorgWarner has announced that it will acquire Delphi Technologies Plc. With the move, BorgWarner, whose product range in the field of electrified and electric drives has certain gaps, wants to secure a piece of the fast-growing cake of electromobility. The acquisition will be executed in an all-stock transaction that values Delphi at about $3.3 billion.

The takeover is expected to strengthen BorgWarner’s power electronics products, capabilities and scale. Delphi Technologies brings industry leading power electronics technology and talent, with an established production, supply and customer base. The combined company will be able to offer customers a suite of integrated and standalone offerings of power electronics products - including high voltage inverters, converters, on-board chargers and battery management systems. It also will enhance BorgWarner’s capabilities in the areas of software, systems integration and thermal management.

In addition, the move is intended to drive synergies. BorgWarner expects the combined company to realize run-rate cost synergies of approximately $125 million by 2023 driven primarily by SG&A and procurement savings. In addition, the company expects significant long-term revenue synergies primarily from the opportunity to offer more integrated electrified products, creating further value for the combined company’s stockholders.

The transaction is expected to close in the second half of 2020, subject to approval by Delphi stockholders, the satisfaction of customary closing conditions and receipt of regulatory approvals.

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, Michigan.

Delphi Technologies was created from a split of the former automotive supplier Delphi Automotive in 2017, when the electronics division was spun off and has been operating under the name of Aptiv since then. The powertrain activities were renamed Delphi Technologies.

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