|<span class="articleLocation">Auto parts maker BorgWarner Inc BWA.N agreed to buy Remy International Inc REMY.O, a maker of electric and hybrid motors, for about $950 million to better compete in the fast-growing market for electric and hybrid vehicles.|
BorgWarner's offer of $29.50 per share represents a premium of 44 percent to Remy's closing price of $20.53 on Friday. Remy's shares were trading at $29.15 before the opening bell.
BorgWarner's shares were up 0.7 percent at $54.01.
BorgWarner is one of the biggest suppliers of turbocharging technology, increasingly used by automakers to boost fuel economy and meet stricter gas mileage and emission requirements.
"The hybrid motor portfolio (Remy has the largest hybrid motor production and testing facility in North America) should help BorgWarner benefit from the progression of hybrid technology," RBC Capital Markets LLC analyst Joseph Spak wrote in a client note on Monday.
The deal, which is expected to close in the fourth quarter, has an enterprise value of $1.2 billion, BorgWarner said.