BorgWarner Acquires Rhombus Energy Solutions

Rhea-AI Summary

BorgWarner has acquired Rhombus Energy Solutions for an enterprise value of up to $185 million. The deal, primarily funded with cash, enhances BorgWarner's charging business by expanding its North American presence and complementing its existing European operations. Rhombus specializes in vehicle-to-grid (V2G) technology and will aid BorgWarner's Charging Forward strategy, positioning it to innovate in electric mobility infrastructure. Approximately $130 million was paid at closing, with potential contingent payments of $55 million over three years.

Positive

• Acquisition enhances BorgWarner's presence in North America and complements its European operations.
• Expands capabilities in vehicle-to-grid (V2G) DC Fast Charging technology.
• Supports growth in the electric vehicle infrastructure market.

Negative

• None.

• Complements existing BorgWarner European charging footprint to accelerate organic growth and adds North American regional presence to charging business
• Supports expansion in vehicle-to-grid (V2G) DC Fast Charging and enabling software market
• Leverages BorgWarner's strength and capabilities across quality, engineering, supply chain, manufacturing, and sales                    

AUBURN HILLS, Mich., Aug. 3, 2022  /PRNewswire/ - BorgWarner Inc. (NYSE: BWA) today announced that it has acquired Rhombus Energy Solutions. 

Headquartered in San Diego, California, Rhombus offers V2G and Underwriters Laboratory-certified charging. Rhombus supplies its patented technology to EV OEMs, including Proterra, and charging and grid service providers.

The transaction has an enterprise value of up to $185 million, which is being funded primarily with cash balances. Approximately $130 million was delivered at closing and up to $55 million could be paid in the form of contingent payments over the next 3 years.

"The technology that Rhombus brings expands BorgWarner's electric vehicle portfolio in North America and complements our existing European charging business. 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," said Frédéric Lissalde, President and CEO of BorgWarner. "As a supplier to the automotive and commercial vehicle markets, we are not only delivering innovative technology for electric drivetrains, but we are also focused on supporting certain key elements of the infrastructure for electric mobility, including charging."

About BorgWarner
For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. Today, we're accelerating the world's transition to eMobility — to help build a cleaner, healthier, safer future for all.

Forward-Looking Statements:
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You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties, among others, include: supply disruptions impacting us or our customers, such as the current shortage of semiconductor chips that has impacted original equipment manufacturer ("OEM") customers and their suppliers, including us; commodities availability and pricing; competitive challenges from existing and new competitors including OEM customers; the challenges associated with rapidly-changing technologies, particularly as relates to electric vehicles, and our ability to innovate in response; uncertainties regarding the extent and duration of impacts of matters associated with the COVID-19 pandemic, including additional production disruptions; the difficulty in forecasting demand for electric vehicles and our electric vehicles revenue growth; potential disruptions in the global economy caused by Russia's invasion of Ukraine; failure to realize the expected benefits of this or other acquisitions on a timely basis; the failure to promptly and effectively integrate this or other acquired businesses; the ability to identify targets and consummate acquisitions on acceptable terms; the potential for unknown or inestimable liabilities relating to the acquired businesses; the uncertainty of the global economic environment and potential for recessionary conditions in regional economies; and the other risks noted in reports that we file with the Securities and Exchange Commission, including Item 1A, "Risk Factors" in our most recently-filed Form 10-K and/or Quarterly Report on Form 10-Q. We do not undertake any obligation to update or announce publicly any updates to or revisions to any of the forward-looking statements in this press release to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.

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SOURCE BorgWarner

FAQ

What is the value of the BorgWarner acquisition of Rhombus?

The acquisition of Rhombus Energy Solutions has an enterprise value of up to $185 million.

How will the Rhombus acquisition impact BorgWarner's charging business?

The acquisition enhances BorgWarner's North American presence and supports its existing European charging operations.

What technologies does Rhombus Energy Solutions offer BorgWarner?

Rhombus specializes in vehicle-to-grid (V2G) technology and offers DC Fast Charging solutions.

What is the payment structure for the Rhombus acquisition?

BorgWarner paid approximately $130 million at closing, with up to $55 million possible in contingent payments over three years.

When was the acquisition of Rhombus by BorgWarner announced?

The acquisition was announced on August 3, 2022.