BorgWarner adds to growing EV portfolio with Rhombus Energy Solutions acquisition
American automotive supplier BorgWarner (NYSE: BWA) has announced it has acquired Rhombus Energy Solutions in a deal expected to be worth up to $185 million.
The acquisition complements the company’s European charging footprint to accelerate organic growth and also adds North American regional presence to its charging business.
In the midst of surging sales demand for eco-friendly vehicles across the globe, BorgWarner, which supplies to General Motors (NYSE: GM) and Ford Motor (NYSE: F), is targeting greater revenue from electric vehicles (EVs) by 2030.
Rhombus Energy Solutions, headquartered in San Diego, offers vehicle-to-grid (V2G) and Underwriters Laboratory-certified (UL) charging.
It also supplies its patented technology to companies including Proterra.
A total of $130 million was paid for at the closing of the deal with the remaining balance of up to $55 million to be paid contingently over the next three years.
BorgWarner chief executive officer Frédéric Lissalde said the opportunity is exciting for the company and adds to a growing portfolio.
“The technology that Rhombus brings expands BorgWarner’s EV portfolio in North America and complements our existing European charging business,” he said.
“This transaction supports our Charging Forward strategy and strengthens our electric vehicle positioning as we look to power the entire propulsion system from grid to wheels,” Mr Lissalde added.
Strong demand sees positive quarter results
EV charging companies continue to gain interest across the globe as demand for the vehicles rise, with many governments endorsing the shift towards eco-friendly transportation.
BorgWarner’s recent quarter results reflected this with the company’s net sales of $3.76 billion beating its expectation of $3.7 billion on the back of this strong demand.
BorgWarner latest acquisition adds to portfolio
Within the past few years, BorgWarner has made inroads into capitalizing on the growing demand for EVs through the completion of a number of acquisitions.
In May 2019, the company invested into the leading battery tech company founded by Tesla and SpaceX engineers, Romeo Power.
Later that year, BorgWarner Romeo Power was formed, a joint venture which lasted until February 2022, when BorgWarner decided to sell its stake.
In August 2021, BorgWarner acquired the full interest in German EV battery company AKASOL and in March 2022, it took complete ownership in Santroll Automotive Components, a light vehicle eMotor business.
The company expects the latest acquisition of Rhombus Energy Solutions to keep the momentum going, fuelling its growth in the EV industry.