BorgWarner said its acquisition of Delphi will create “a leader in electrified propulsion systems that is well-positioned to take advantage of future propulsion migration,” according to a press release.

BorgWarner Inc., a global provider of clean and efficient technology solutions for combustion, hybrid and electric vehicles, is acquiring propulsion technologies manufacturer Delphi Technologies PLC in an all-stock transaction that places Delphi Technologies’ enterprise value at approximately $3.3 billion.

The deal is expected to close in the second half of 2020. When the transaction is completed, the combined company will be led by Frédéric Lissalde, BorgWarner’s president and CEO, and Kevin Nowlan, BorgWarner’s CFO, and will operate as BorgWarner. The combined company will be headquartered in Auburn Hills, Michigan.

BorgWarner said the acquisition would strengthen its power electronics products, capabilities and scale. Combining with Delphi Technologies is consistent with BorgWarner’s evolution towards the propulsion market of the future, according to the company, and would enable BorgWarner to maintain flexibility across combustion, hybrid, and electric propulsion.

“This exciting transaction represents the next step in BorgWarner’s balanced propulsion strategy, strengthening our position in electrified propulsion as well as our combustion, commercial vehicle and aftermarket businesses,” said Lissalde. “Delphi Technologies will bring proven leading power electronics technologies, talent and scale that will complement our hybrid and electric vehicle propulsion offerings."

Delphi CEO Richard Dauch said his company’s portfolio is highly complementary to BorgWarner’s. "Together we plan to create a pioneering propulsion technologies company uniquely equipped to serve OEMs and aftermarket customers around the world."