Through its subsidiary Danfoss Power Solutions, Danfoss of Denmark acquires the US electric drive specialist UQM Technologies. For a purchase price of around 100 million dollars, the acquisition is expected to be completed in the second quarter of 2019.
UQM Technologies, a developer of alternative energy technologies, announced that it has entered into a definitive merger agreement with the Danfoss Power Solutions (US) Company, a wholly-owned subsidiary of Denmark-based Danfoss.
Danfoss is a leading manufacturer of hydraulic systems, drives, motors, and components for the automotive, aerospace, HVAC, and energy industries. The merger anticipates that UQM will become part of the Danfoss Power Solutions segment.
Under the agreement, Danfoss will acquire all outstanding common shares of UQM for 1.71 US dollars per share. The all-cash transaction is valued at approximately 100 million and includes the assumption of UQM’s debt.
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Kim Fausing, President & CEO of Danfoss, added, “We see fast-growing demand for electric solutions within buses and trucks, off-highway vehicles, and marine markets in response to the more stringent emission regulations being imposed – stimulating interest in the efficiency and productivity gains our solutions bring. With an established North American presence, UQM will complement our global sales and manufacturing footprint nicely, further cementing our strong position in the marine as well as on- and off-highway markets.”
Also Joe Mitchell, UQM Technologies’ President and Chief Executive Officer, was content and stated, “we believe the transaction positions UQM well for the future – particularly in key geographies such as China and India, where Danfoss already operates.”
The agreement is expected to have reached finalisation in the second quarter of 2019, subject to approval by UQM’s shareholders and CFIUS