Danfoss Buys UQM
By Mike Osenga22 January 2019
Danfoss Power Solutions almost unbelievable buying spree of acquisitions, mostly, but not exclusively centered around the burgeoning world of electrification, announced it has entered into a definitive merger agreement with UQM Technologies, Inc., pursuant to which Danfoss will acquire all outstanding common shares of UQM.
UQM is a producer of motors and inverters in the power range of up to 250 kW. With the transaction, Danfoss said it has added an important and complementary technology to its current product range.
UQM sad Danfoss will acquire all of its outstanding common shares for $1.71 per share in an all-cash transaction valued at approximately $100 million, including the assumption of UQM’s debt. The transaction is expected to close in the second quarter of 2019, subject to approval by UQM’s shareholders and the Committee on Foreign Investment in the United States (CFIUS).
UQM has experience within propulsion systems for electric, hybrid electric, plug-in hybrid electric vehicles and fuel cell compressor drives, is headquartered in Longmont, Colorado, U.S., and will become part of the Danfoss Power Solutions segment.
“It is a great pleasure to announce this transaction with UQM, which will position Danfoss even stronger in the markets. We see a fast-growing demand for electric solutions within buses and trucks, off-highway vehicles and the marine market in response to the more stringent emissions regulations being imposed in these markets, as well as efficiency and productivity gains that these solutions bring. With a well-established North American presence, this will nicely complement our already strong global sales and manufacturing footprint, and further cement our strong position in the marine, and on- and off-highway markets. I look forward to welcoming the UQM team to Danfoss and to our business,” says Kim Fausing, Danfoss president & CEO.