BorgWarner Enters Electric Market and Opens New Chapter in Electric Drive

BorgWarner agreed to acquire Sevcon for approximately US$200 million. In this transaction, Sevcon will bring more electric vehicle technology to BorgWarner’s automotive-driven engineering and product portfolio, and will also promote BorgWarner. Good entry into the electric drive market in the United States and Europe.

In his speech, BorgWarner CEO James Verrier stated that the current strategy of BorgWarner is to supply various types of industry-leading drive system technology, internal combustion engine technology, hybrid power and electric technology, and this transaction will undoubtedly accelerate BorgWarner's plan. .

Sevcon, a British manufacturer of new energy vehicle control devices and battery chargers, said that the price of this transaction is equivalent to $22 per share, or a premium of 61% over the company's July 14 closing price. The transaction will be completed by cash purchase.

Sevcon CEO Matt Boyle said: "The proposal to merge with BorgWarner is also of great benefit to shareholders. For Sevcon, it can also maximise the benefits of previous growth investment, and can also use BorgWarner's Advantages to enter more markets."

The sales of BorgWarner's engine business in the first quarter increased by 6.9% year-on-year to US$1.5 billion, while the power system business also increased by 5.2% to US$925 million.

The transaction is still waiting for the approval of shareholders and anti-trust organizations and is expected to be completed in the fourth quarter of this year. Richard Kwas, an analyst at Wells Fargo Bank of America, stated in a statement to investors that in the long run, BorgWarner should apply Sevcon's technology to a wider range of areas and markets.

In April, BorgWarner invested in Autotech Ventures, a Silicon Valley venture capital company, hoping to learn about and support new start-up companies in the automotive and technology sectors. Brady Ericson, chief strategy officer at BorgWarner, said that a $10 million investment could help the start-up shift to driving technology and personal mobility.