UQM merger pushed back as CFIUS extends investigation period

LONGMONT —  The merger of UQM Technologies Inc. (NYSE American: UQM), a developer of alternative energy technologies for electric vehicles, and Denmark-based Danfoss Power Solutions (US) Co. may take a bit longer to complete than initially anticipated.

The company announced this week that the Committee on Foreign Investment in the United States, a regulatory body the reviews foreign investments in American firms, is extending the period of time it has allotted to investigating the transaction.

The merger with Danfoss Power Solutions, a division of Danfoss A/S, was approved by UQM shareholders in April and was expected to close in the second quarter of 2019. Now the company says the deal will likely be finalized in the third quarter.

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“Management has been given no reason to believe that the results will differ from earlier expectations about the successful closing of the merger with Danfoss,” according to a recent UQM announcement.

If the deal closes, 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 assumption of UQM’s debt. The merger anticipates that UQM will become part of the Danfoss Power Solutions segment.
UQM develops and manufactures power-dense, high-efficiency electric motors, generators, power electronic controllers and fuel cell compressors for the commercial truck, bus, automotive, marine and industrial markets. The company has about 90 employees in Longmont.