Zürich, Switzerland: Cleantech venture capital pioneer Emerald Technology Ventures announced Wednesday that BorgWarner (NYSE: BWA), a leading global automotive supplier, has acquired Emerald portfolio company Rhombus Energy Solutions in a landmark transaction in the electric vehicle charging sector.
San Diego, CA-based Rhombus is a leader in fast chargers for commercial electric vehicles and vehicle-to-grid capabilities and is well-positioned amid rapid growth in the global market for electric mobility. Earlier this year Rhombus announced the rollout of an innovative new modular system that boosts efficiency and reduces the size and weight of its chargers.
Emerald led Rhombus’s Series C round in summer 2020, bringing a consortium of investors together that included Cycle Capital Management, İnci Holding, Nabtesco Technology Ventures, Greenhouse Capital Partners and existing shareholders. The sale to Michigan-based BorgWarner comes roughly a year after another leading automotive technology company, Sensata Technologies, acquired Emerald portfolio company Spear Power Systems, a leader in battery storage systems for commercial mobility.
“Over the past few years, it has become increasingly evident that electrification of the transport sector is inevitable and has now hit the tipping point,” says Emerald Senior Partner Markus Moor. “BorgWarner is the ideal partner to help Rhombus scale its cutting-edge technologies in this dynamic space, and Emerald is proud to have supported Rhombus’s rapid growth and technological development over the past two years.”
“I am energized to take this next step in achieving our goals and vision to become part of a global industry leader in e-mobility charging by joining BorgWarner,” says Rick Sander, Co-Founder, President and CEO of Rhombus. “The strategic fit is perfect, providing Rhombus the platform to continue our rapid growth by leveraging BorgWarner’s strengths.”
“The technology that Rhombus brings expands BorgWarner’s electric vehicle portfolio in North America and complements our existing European charging business,” says Frédéric Lissalde, President and CEO of BorgWarner. “As a supplier to the automotive and commercial vehicle markets, we are not only delivering innovative technology for electric drivetrains, but we are also focused on supporting certain key elements of the infrastructure for electric mobility, including charging.”
The transaction has an enterprise value of up to $185 million. IMPROVED Corporate Finance acted as exclusive financial advisor to Rhombus Energy Solutions and its shareholders in the transaction. Additional details and terms of the transaction are confidential.