BorgWarner Inc. and Eldor Corporation S.p.A. announced they have entered into a Share Purchase Agreement under which BorgWarner has agreed to acquire the Electric Hybrid Systems (EHS) business segment of Eldor for €75 million at closing with a potential additional amount due subject to an earnout.

The transaction is subject to satisfaction of closing conditions and is expected to close in the third quarter of 2023.

Headquartered in Italy, Eldor’s EHS segment includes on-board chargers (OBCs), DC/DC converters, and integrated high voltage boxes, all of which are expected to complement BorgWarner’s existing product portfolio, the companies say.

BorgWarner says the acquisition is expected to enhance its capabilities in engineering compact and efficient 400V and 800V on-board chargers that are compatible with the variety of regional grid configurations found globally while also bringing innovative and cost-effective high-frequency DC/DC converter technology to the portfolio. BorgWarner expects that Eldor’s EHS business will generate €25 million of revenue for the full year 2023. Relative to its Charging Forward 2027 targets, BorgWarner adds it expects revenues will be approximately €250 million in 2027.

“Eldor’s technologies are a great complement to BorgWarner’s ePropulsion portfolio, particularly as it relates to expanding in high-voltage power electronics beyond the inverter,” said Frédéric Lissalde, president and CEO of BorgWarner. “As we continue with our Charging Forward M&A strategy, we look forward to welcoming Eldor’s talented team to BorgWarner later this year.”