• Corporate Finance Transactions

BGL Industrials Insider:   Technology Fuels M&A in Automotive

March 22 2018

Cleveland, OH – March 22, 2018 – The automotive industry is undergoing transformation, creating opportunities for innovative, technology-led companies, according to the Industrials Insider, an industry report released by Brown Gibbons Lang & Company (BGL). 
 
An “automotive revolution” is predicted over the next decade, as tighter emissions and fuel economy standards and changing consumer preferences drive increased demand for vehicle electrification, autonomy, and lightweighting. Market participants are bracing for technology changes, a seismic shift that is accelerating portfolio reviews and strategic investments to capitalize on the transition to electric and self-driving vehicles. Technology-driven M&A will drive deal activity across the value chain as companies look to stay viable in the innovation race.
 
  • Ford (Princeton Lightwave), General Motors (Strobe), Aptiv (nuTonomy), and Magna International (Innoviz Technologies) are among the large auto companies to recently make acquisitions or investments in developers of LIDAR sensors—critical technology needed to commercialize production of autonomous vehicles. 
  • Automakers are investing in a broad range of technologies as the market migrates from traditional gasoline and diesel internal combustion engines to hybrid and electric. BorgWarner acquired Sevcon, a manufacturer of controllers and system components for electrically powered vehicles, to build its capabilities in electric propulsion systems. 
  • Global CO2 and fuel economy regulations are driving increased demand for lightweight materials. AK Steel acquired Precision Partners, which specializes in lightweighting and complex metal components, to broaden its platform for innovative lightweight steel solutions in the automotive market. 
BGL publishes periodic Insider research publications on a variety of industries including automotive; building products and construction materials; business services; consumer and retail; environmental and industrial services; healthcare and life sciences; industrials; metals; and plastics and packaging. Download BGL Insider reports at www.bglco.com/research
 
About Brown Gibbons Lang & Company
Brown Gibbons Lang & Company is a leading independent investment bank serving the middle market. BGL specializes in mergers and acquisitions advisory services, debt and equity placements, financial restructuring advice, and valuations and fairness opinions, with global industry teams in Business Services, Consumer & Retail, Environmental & Industrial Services, Healthcare & Life Sciences, Diversified Industrials, Metals & Metals Processing, and Real Estate. BGL has offices in Chicago, Cleveland, Philadelphia, San Antonio, and San Diego in addition to Global M&A partner offices in more than 50 countries across 5 continents. BGL is able to deliver to our clients unparalleled access to strategic relationships, investors, and opportunities globally. For more information, please visit www.bglco.com.
 

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