ETtechBengaluru: Endurance Technologies, one of India's largest automotive component makers, has bought the battery management system unit of energy tech startup Ion Energy for $40 million in an all-cash deal.
Endurance will buy 51% of Maxwell Energy Systems, a subsidiary of Mumbai-based Ion Energy, for $17.5 million to begin with. The remaining 49% will be bought in phases over the next five years, Ion energy said in a statement.
After the acquisition, Maxwell will increase its R&D team to more than 250 engineers and launch new products for electric vehicles and energy storage systems.
The battery management system is an electronic system that monitors a battery’s state of charge and its health to ensure that it is protected. For Endurance, which supplies components to some of the biggest automotive companies like Bajaj Auto and Hero MotoCorp, Maxwell’s product is the first EV-specific product it will sell after the acquisition.
The acquisition also comes amid increasing scrutiny on EV makers, after more than two dozen electric two-wheelers have caught fire across the country.
Maxwell currently supplies to over 70 vehicle makers and battery pack makers, including Tata Motors and Okinawa Scooters, spread across 15 countries including India, France, Spain and the US, the company said. To date, it has deployed over 65,000 smart BMS in electric vehicles and stationary storage systems and has an active order pipeline of over $19.5 million (Rs 150 crore) from manufacturers in India and Europe.
Meanwhile, Ion Energy said it will continue to own and operate its other software-as-a-service (SaaS) business Altergo.
“With fairly rapid vehicle electrification, OEMs have accelerated their EV plans, and are focusing on battery parameters including safety, range and power, and BMS would be a key differentiator,” said Anurang Jain, managing director of Endurance Technologies. “We plan to leverage Maxwell's deep technical expertise developed over the years and its BMS deployment experience in Indian and European conditions. We aim to offer our products to multiple new customers, including Indian automotive OEMs and battery pack manufacturers.”
“Maxwell’s business is growing exponentially and large OEMs are relying on us to deliver on their electrification plans,” said Akhil Aryan, cofounder and CEO of Ion Energy. “The partnership with Endurance enables us to deliver on our commitments with strength and reliability. Together we will reinforce and consolidate our supply chain, operations and manufacturing. We will also expand the team and product portfolio to accelerate the global EV transition with a strong focus on India.”
Endurance will buy 51% of Maxwell Energy Systems, a subsidiary of Mumbai-based Ion Energy, for $17.5 million to begin with. The remaining 49% will be bought in phases over the next five years, Ion energy said in a statement.
The investment will be a combination of both primary and secondary investments, the company said. In secondary investments, the proceeds go to existing investors who sell shares and not to the company itself.
After the acquisition, Maxwell will increase its R&D team to more than 250 engineers and launch new products for electric vehicles and energy storage systems.
The battery management system is an electronic system that monitors a battery’s state of charge and its health to ensure that it is protected. For Endurance, which supplies components to some of the biggest automotive companies like Bajaj Auto and Hero MotoCorp, Maxwell’s product is the first EV-specific product it will sell after the acquisition.
The acquisition also comes amid increasing scrutiny on EV makers, after more than two dozen electric two-wheelers have caught fire across the country.
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Maxwell currently supplies to over 70 vehicle makers and battery pack makers, including Tata Motors and Okinawa Scooters, spread across 15 countries including India, France, Spain and the US, the company said. To date, it has deployed over 65,000 smart BMS in electric vehicles and stationary storage systems and has an active order pipeline of over $19.5 million (Rs 150 crore) from manufacturers in India and Europe.
Meanwhile, Ion Energy said it will continue to own and operate its other software-as-a-service (SaaS) business Altergo.
“With fairly rapid vehicle electrification, OEMs have accelerated their EV plans, and are focusing on battery parameters including safety, range and power, and BMS would be a key differentiator,” said Anurang Jain, managing director of Endurance Technologies. “We plan to leverage Maxwell's deep technical expertise developed over the years and its BMS deployment experience in Indian and European conditions. We aim to offer our products to multiple new customers, including Indian automotive OEMs and battery pack manufacturers.”
“Maxwell’s business is growing exponentially and large OEMs are relying on us to deliver on their electrification plans,” said Akhil Aryan, cofounder and CEO of Ion Energy. “The partnership with Endurance enables us to deliver on our commitments with strength and reliability. Together we will reinforce and consolidate our supply chain, operations and manufacturing. We will also expand the team and product portfolio to accelerate the global EV transition with a strong focus on India.”
