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UQM Technologies Inc (NYSE:UQM) agreed to be acquired by Danfoss.
The Longmont, Colorado company, a developer of alternative energy technologies, announced the deal Monday, under which Danfoss will acquire all outstanding common shares of UQM for $1.71 per share in an all-cash transaction valued at approximately $100 million, including the assumption of UQM's debt.
Danfoss, a privately-owned multinational company with reported sales of €5.8 billion in 2017 (2018 full-year results to be released on February 28), is a leading manufacturer of hydraulic systems, drives, motors, and components for the automotive, aerospace, HVAC, and energy industries.
The merger anticipates that UQM will become part of the Danfoss Power Solutions segment.
The cash consideration represents a premium of approximately 52.5% over UQM's closing share price on January 18, 2019 and a 71.4% premium to its weighted average trading price over the trailing 60 days.
The transaction will be funded with Danfoss' cash on hand and is not subject to any financing condition. The merger agreement was unanimously agreed to by the Boards of Directors of both UQM and Danfoss
UQM CEO Joe Mitchell, said, "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."
Shares raced ahead 51 cents, or 45.4%, to $1.64
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