BorgWarner Inc. and Delphi Technologies PLC entered into a definitive transaction agreement under which Auburn Hills, Mich.-based BorgWarner will acquire Delphi Technologies for approximately $3.3 billion. The acquisition will strengthen BorgWarner’s power electronics products, capabilities and scale. Combining with London-based Delphi Technologies will enable BorgWarner to maintain flexibility across combustion, hybrid and electric propulsion. The combined company will serve light- and commercial-vehicle manufacturers and the aftermarket.

Following the close of the transaction, the combined company will offer a suite of integrated and standalone offerings of power electronics products (including high-voltage inverters, converters, on-board chargers and battery management systems) and capabilities (including software, systems integration and thermal management). In addition, Delphi Technologies’ range of combustion propulsion products complements BorgWarner’s portfolio, which is focused on clean technologies to increase efficiency and performance of modern combustion vehicles.

The transaction is expected to close in the second half of 2020.