Danfoss to Buy UQM

Danfoss Power Solutions Co., a subsidiary of Denmark-based Danfoss AS, has agreed to purchase UQM Technologies Inc. for $100 million.

The all-cash deal includes the assumption of UQM’s debt. The transaction is expected to close in the second quarter.

Longmont, Colo.-based UQM makes electric motors, generators, power electronic controllers and fuel cell compressors for hybrid, electric and fuel cell-powered vehicles. Danfoss supplies hydraulic systems, drives, motors, and components for the automotive, aerospace, HVAC and energy industries.

The Danfoss acquisition follows a 2016 proposal under which Hong Kong’s Hybrid Kinetic Group Ltd. was to buy UQM for $48 million. That deal fell through in December 2016, six months after it was announced.

UQM says being part of Danfoss, which had $6.6 billion in sales in 2017, will provide it with greater financial resources to fund product development and expansion into China and India. The company is targeting applications for electrified buses, trucks, off-highway and marine vehicles.