January 29, 2023

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BorgWarner to acquire battery systems maker Akasol in $880 million deal

BorgWarner is increasing its electrification portfolio immediately after signing an arrangement to receive Akasol, a maker of battery programs for professional and off-street cars centered in Darmstadt, Germany, at a worth of 727 million euros ($880 million).

Beneath the phrases of the arrangement, a BorgWarner device will initiate a voluntary public takeover of all superb shares of Akasol, at a value of 120 euros for every share, a 23 {ed0b873b90f1b87a4f3b347f1646a477c6eee9bccb9dcbe5ac9cb67a3d16495a} high quality to the 3-thirty day period common value.

The transaction is anticipated to shut toward the stop of the next quarter, BorgWarner stated in a assertion on Monday.

BorgWarner shares rose 10 {ed0b873b90f1b87a4f3b347f1646a477c6eee9bccb9dcbe5ac9cb67a3d16495a} to $46.28 in premarket investing on Tuesday. Marketplaces were being closed for the duration of the vacation on Monday.

Akasol, at first established up in 1990, would make battery programs for buses, professional and industrial cars as effectively as locomotives and ships. It buys lithium cells and adapts them to programs that are utilized by suppliers these as Daimler and Volvo.

BorgWarner stated the acquisition would “significantly increase its professional car or truck electrification abilities.”

“Akasol’s production footprint and proven, in-generation buyer foundation are complementary to BorgWarner’s and would accelerate our foothold into the quickly-expanding professional car or truck and off-highway battery pack market place,” BorgWarner CEO Frederic Lissalde stated in the assertion.

Suppliers that customarily designed components for inner combustion powertrains these as BorgWarner are experiencing monetary force from the shift to electrified cars.  

BorgWarner has sought to shore up its place in electrification by means of many the latest acquistions, notably a $3.2 billion deal very last year to receive Delphi Technologies. In 2019, BorgWarner purchased a 20 {ed0b873b90f1b87a4f3b347f1646a477c6eee9bccb9dcbe5ac9cb67a3d16495a} stake in battery packs provider Romeo Electric power Technologies, which was started by previous engineers from Tesla, SpaceX and Samsung.