GlobalData’s deals database reveals that Clarios, the parent company of VARTA Automotive will purchase Paragon GmbH & Co’s power business that produces batteries and battery management systems for the automobile industry.
Clarios specialises in manufacturing and recycling low-voltage networks and batteries.
Clarios is the parent company of VARTA Automotive, a leading transportation battery brand in Europe. Clarios’ low-voltage architecture and batteries power one in three vehicles globally.
Details of the transaction were not disclosed.
Why it matters
Paragon’s engineering team’s expertise and leadership with projects with global OE customers complements the Clarios low-voltage and li-ion programs. The acquisition significantly increases Clarios’ engineering team that is dedicated to the development of new low-voltage architectures at the company.
The low-voltage network is critical to the new user experiences, data collection methods and power system transformation underway in vehicles. Partnership with key OE customers, especially around advanced lithium-ion programs will be boosted by the additional engineering resource that the Paragon acquisition brings.
GlobalData analyst Al Bedwell says that M&A activity in the area of the supply of systems, architectures and batteries for EVs is going to intensify. “Companies are aggressively eyeing their resource capabilities and the means to quickly grow that in emerging critical technology areas. This acquisition is a good example of that,” he said. “Varta is a big player in traditional 12V starter batteries, but also has to address the more complex needs of electrical systems in future EVs. Paragon can help it step up in future low-voltage architectures.”
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