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26 August, 2019

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Danfoss buys US drivetrain developer UQM in $100m deal

24 January, 2019

Danfoss is buying the US electric drivetrain developer UQM Technologies in a cash transaction worth around $100m, including the assumption of UQM’s debts. Danfoss says that UQM’s expertise in motors and inverters up to 250kW for electric, hybrid electric, plug-in hybrid electric propulsion systems, “adds an important and complementary technology to our current product range”.

UQM, whose headquarters are in Colorado, has more than 50 years of experience in electric propulsion systems and fuel cell compressor drives. It will become part of the Danfoss Power Solutions.

Explaining the reasons for the purchase, Danfoss’ president and CEO, Kim Fausing, says: “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.”

He adds that UQM “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.”

UQM’s president and CEO, Joe Mitchell, says that his company’s products, business model, strategy and focus are “closely aligned” with those of Danfoss. “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.”

UQM manufactures its drivetrain systems in a 12,000 square metre plant in Colorado

“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,” he adds.

UQM offers matched packages of motor/generators, inverters and proprietary control software that it claims optimise performance and offer “the highest torque, power density and efficiency in the industry”. Smart switching and adaptive software result in high efficiencies, lower-cost hardware and compact dimensions. Peak motor-and-inverter efficiencies exceed 95% and are said to be higher than 90% for most of the efficiency map.

The transaction is expected to close in the second quarter of 2019.




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