Sevcon to be acquired for $200M
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Sevcon manufactures parts for electric vehicles, such as this electric truck.
Southborough-based electric vehicle technologies provider Sevcon will be acquired for $200 million by Michigan auto parts supplier BorgWarner, an amount equal to a development contract Sevcon signed with a European manufacturer.
The acquisition comes six month after former Sevcon chairman Ryan Morris -- who controlled 20 percent of Sevcon stock -- made an unsuccessful attempt to remake the board of directors, as he was displeased with the direction of the company.
By buying Sevcon, BorgWarner will be able to provide electrified propulsion solutions, according to a Monday release from the company. The transaction, subject to the approval of Sevcon’s stockholders, is expected to close in the fourth quarter of 2017.
In February, the Southborough company announced it had inked a $150-$200 million, three-year contract to develop parts for an undisclosed European manufacturer, expected to start in 2018.
In June, Sevcon fully acquired Sevcon New Energy Technology Co., Ltd for $5 million in order to capitalize on opportunities in the Chinese electric vehicle market.
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