The company is witnessing stricter safety regulations in India, which are expected to provide strong long-term growth visibility. Bosch Chassis Systems has delivered steady performance, clocking a revenue CAGR of 17% since FY23.
The acquisition of Bosch Chassis Systems is being seen as a strategic move that strengthens the company’s product portfolio and is financially accretive.
The business is highly profitable and is expected to accelerate overall growth, while also helping Bosch take a leading role in the future mobility landscape.
The company expects the acquisition to boost revenue by 22% and deliver EPS accretion of around 5%, based on FY25 estimates. The deal has been executed at an EV/EBITDA multiple of 10.6x for FY25.
Earlier, UBS had said that the acquisition is likely to be value-accretive from both an EPS and return ratio perspective, supported by limited equity dilution and meaningful cash deployment.
It also said that the implied FY25 EV/EBITDA multiple of 10.6x is lower than Endurance Technologies’ FY25 multiple of 21x and its one-year forward multiple of 14x.
The acquisition is aimed at strengthening Bosch’s capabilities in safety and braking systems, while complementing its existing power solutions business.
Bosch Chassis Systems India, which represents the Vehicle Motion division of the Bosch Group in India, is a market leader in automotive safety systems.
Its portfolio spans active safety technologies such as anti-lock braking systems (ABS) and electronic stability control (ESC), passive safety solutions like airbag control units and sensors, as well as braking actuation systems across passenger vehicles, two-wheelers, and commercial vehicles.
