BorgWarner has entered into a definitive agreement to acquire Remy International, a global producer of rotating electrical components.

Under the terms of the agreement, BorgWarner will acquire outstanding shares of Remy totaling 29.50 each or around $1.2 billion in enterprise value. BorgWarner has looked at connections between the two companies including purchasing efficiencies, redundant company expenses and other cost synergies and expects to be able to accelerate the growth through the combined business.

The acquisition is still subject to customary terms and conditions including the approval of Remy’s stockholders, antitrust and other regulatory clearances in the U.S and abroad. The transaction is expected to close in the fourth quarter of 2015.

Remy employs 6,600 people and generated sales of $1.2 billion in 2014.

“We look forward to welcoming Remy’s talented employees to BorgWarner. Their products and capabilities will strengthen BorgWarner’s position in the rapidly developing powertrain electrification trend,” said James Verrier, president and CEO of BorgWarner. “The acquisition will be another step in executing our plan to profitably grow revenue to $15 billion by 2020.”