Danfoss Set to Acquire UQM Technologies (UQM, $1.65) in All-Cash Transaction

UQM Technologies Inc., a developer of alternative energy technologies, on Tuesday announced its definitive merger with Danfoss Power Solutions, a wholly-owned subsidiary of Denmark-based Danfoss A/S.

Under the terms of the deal, Danfoss is all set to acquire all outstanding common shares of UQM for $1.71 per share, valued at approximately $100 million including UQM’s debt in an all-cash deal. This merger would mean that UQM will become part of the Danfoss Power Solutions segment, which is a leading player in hydraulic systems and components for powering off-highway machinery.

This all cash deal, according to Danfoss, would be entirely funded by internal cash and represents a premium of ~52.5% over UQM’s closing share price on January 18, and a 71.4% premium to its weighted average trading price over the trailing 60 days.

The Boards of Directors of both UQM and Danfoss, as well as other shareholders of UQM, have unanimously approved the acquisition. However, the transaction's closing depends on the approval of two-thirds of UQM shareholders, by the Committee on Foreign Investment in the United States (“CFIUS”), as well as other customary closing conditions.

Joe Mitchell, UQM Technologies’ President and Chief Executive Officer, is optimistic the merger could prove successful, particularly in important geographies like China and India, as UQM’s products are well-aligned to those of Danfoss’. On the other hand, Kim Fausing, President & CEO of Danfoss is also excited about the merger as UQM is likely to add value to their global sales manufacturing footprint, and also help strengthen its position in the marine and on- and off-highway markets.