US automotive systems supplier BorgWarner has just bought up the Switzerland-based engineering, power electronics, and control software outfit Drivetek.
The deal marks the realisation of a growth journey that's seen Drivetek garner attention in the auto engineering space, on the back of its inverters, electric drive solutions and power electronics, as well as specialised inverters for high-speed electrified machinery.
Whether it's AI-derived insights from connected vehicles, human-machine interfaces that make navigation easier or electrification of more automotive parts that are increasingly 3D printed, there's no shortage of growth potential for the right engineering services and talent.
However automotive is still recovering from a bit of a rough patch, with the sector having been hit hardest by the computer chip shortage a couple of years back.
Drivetek hasn't disclosed any funding details, but we do know the transaction value of its sale to BorgWarner is around $37.3 million (CHF 35 million), and just $26.7 million is getting paid up front.
The remaining CHF 10 million is due on "contingent" milestones over the next three years.
Still, BorgWarner has provided plenty of help on the way. It was quick to sign up Drivetek as a partner for its high-voltage "eFan" product line, part of the BorgWarner campaign to deliver "clever hybridisation" and power electronics for hybrid vehicles.
Post-acquisition, the corporate expects its eFans to benefit further from Drivetek's auxiliary portfolio of specialised electrification inverters.
"Drivetek is an important partner with BorgWarner on our booked eFan business, with our first customer award being announced in February of this year," said BorgWarner CEO and president Frédéric Lissalde.
"Bringing Drivetek's talented team in house is an investment that grows our power electronics capabilities in auxiliary inverters, which we expect to accelerate the growth of our High Voltage eFan business. We welcome the team to BorgWarner."