Danfoss 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 an expert and technology leader in motors and inverters in the power range of up to 250 kW, and with the transaction, Danfoss adds an important and complementary technology to its current product range. “The acquisition will give us the total package for serving our global markets with optimal solutions, and thereby fully support our customers’ needs – regardless of the chosen technologies. This will enable further growth in the markets we serve and additional growth in the market for buses and trucks.”
Last year, UQM announced its first significant purchase order from KESHI, a major Chinese manufacturer of commercial mining vehicles. The purchase order was for explosion-proof E-drive systems and is valued at $1.2 million. The explosion-proof E-drive system includes UQM’s PowerPhase® 950T and is an integral part in the vehicle application for the Chinese mining industry. This product eliminates dangerous diesel emissions, thereby improving mine operational safety conditions for workers.
“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, President & CEO, Danfoss.
UQM has more than 50 years of experience within propulsion systems for electric, hybrid electric, plug-in hybrid electric vehicles and fuel cell compressor drives, is headquartered in Longmont, Colorado, and will become part of the Danfoss Power Solutions segment.
“We believe UQM will be an excellent addition to Danfoss as our products, business model, strategy and focus are closely aligned. Being part of a larger global enterprise will greatly improve our position to compete with other international players, open doors to new markets, and provide critical resources for UQM to continue developing the highly-engineered electric propulsion products we’re known for today,” says Joe Mitchell, President and Chief Executive Officer, UQM Technologies. “We believe the transaction positions UQM well for the future – particularly in key geographies, such as China and India, where Danfoss already operates – and provides an attractive return for our shareholders. We’re proud of our many accomplishments and look forward to a future with Danfoss, with which we can enhance service for our customers, invest in technology, and adapt to the ever-changing dynamics of our core markets.”
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).