Auto component manufacturer Endurance Technologies Ltd said on July 1 that it has acquired a 51 percent stake in Maxwell Energy Systems Private Ltd for Rs 135 crore.
Mumbai-headquartered Maxwell is a subsidiary of US-based ION Energy, according to an exchange filing. As a result of this acquisition, Maxwell, which is in the business of embedded electronics, particularly in battery management systems ("BMS") for vehicles including electric vehicles, is now a subsidiary of Endurance Technologies from July 1.
The shares were acquired "...through a combination of primary issuance and secondary purchase," Endurance Technologies said in the filing.
The company further stated that the 'balance 49 percent stake shall be purchased in a phased manner in five tranches, spread over the next five financial years'.
The acquisition will facilitate Endurance's foray into an EV-centric product line as an early participant to offer BMS to auto OEMs.
It is expected that, as a preferred tier-1 auto component supplier, the company will effectively leverage its business relationships to further grow the acquired business with its OEM customers.
The total cost of the acquisition was Rs 135 crore, of which Rs 71.5 crore was towards subscription to primary issuance of 37,007 shares and Rs 63.5 crore towards purchase 32,866 shares at a secondary market price of Rs 19,321 per equity share with a face value of Re 1, the filing added.Endurance Technologies had on May 18, 2022 informed the exchanges about execution of Share Subscription and Purchase Agreement with shareholders of Maxwell Energy Systems Private Limited ('Maxwell'), for acquiring 100% of its equity share capital in a phased manner.