Eltek ASA today announced that it has signed an agreement whereby it will sell its activities related to on-board chargers for electric vehicles to Valeo, a global supplier of components for the automotive industry. Eltek specialized in high-efficiency on-board chargers for passenger cars and commercial vehicles. This acquisition will enable Valeo to accelerate and expand the development of its offer for hybrid and electric vehicles by adding Eltek Electric Vehicles' on-board chargers. Terms of the agreement were not announced.
According to a statement issued at the time of the acquisition, Valeo observed that the Eltek EV product line will complete its offer in power electronics by adding high-efficiency conversion solutions to the ongoing development of high efficiency inverters with several top original equipment manufacturers (OEMs). In a separate statement, Eltek observed that divesting its automotive activities to Valeo is a part of its ongoing cultivation of core businesses.
“While we see potential in the automotive industry the automotive business is not in our core business. It is our opinion that this transaction is beneficial to Eltek since it allows us to focus on opportunities that are more closely related to our traditional market in the telecom industry, industrial applications and data centers. With Valeo’s experience and knowhow in the automotive industry, we believe they can offer the e-vehicle charger business much greater potential for growth,†said Morten Schøyen, chief marketing officer at Eltek.
Eltek and Valeo have co-operated within the automotive space prior to the announced transaction. Both companies believe that customers will be well served by the new arrangement. The responsibility for the 16 employees in Eltek E-Vehicles will be transferred to Valeo. A separate location has been identified close to the Eltek premises in Drammen, setting the grounds for a future co-operation on technology which also is a part of the agreement.
