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BorgWarner to acquire Delphi Technologies

28 January 2020

BorgWarner and Delphi Technologies have entered into a definitive transaction agreement under which BorgWarner will acquire Delphi Technologies in an all-stock transaction that values Delphi Technologies at approximately $3.3 billion.

Under the terms of the agreement, which has been approved by the boards of directors of both companies, Delphi stockholders would receive a fixed exchange ratio of 0.4534 shares of BorgWarner common stock per Delphi Technologies share. Upon closing of the transaction, current BorgWarner stockholders are expected to own approximately 84% of the combined company, while current Delphi Technologies stockholders are expected to own approximately 16%.

In fiscal year 2019, BorgWarner and Delphi Technologies estimate that they generated $10.17 billion and $4.36 billion of net sales, respectively. 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.

Combining with Delphi would enable BorgWarner to maintain flexibility across combustion, hybrid, and electric propulsion (C-H-E), the company said. The acquisition is expected to bring a number of strategic benefits:

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.

Source: BorgWarner