Danfoss announced in September a public tender offer to acquire all shares of AC drives builder Vacon. Vacon shareholders are being offered a cash consideration of 34 euros for each share in Vacon, representing an aggregate equity purchase price of approximately 1.04 billion euros.

Both Danfoss Power Electronics and Vacon are significant players in the AC drives business. “After a careful examination of Danfoss’ offer, the Board of Directors of Vacon has unanimously decided to recommend that the shareholders accept it. By joining forces, the two companies will create a Nordic-based global player—a new AC drives business with the clear ambition to build a leading position in the AC drives market,” said Panu Routila, chairman of the board at Vacon.

“We have a clear strategic ambition to be one of the absolute top players in the businesses where we operate. Vacon is a very strong and innovative player and by creating this new drives business we can ensure a strong long-term growth trajectory,” said Niels B. Christiansen, CEO at Danfoss.

Vacon, headquarted in Vaasa, Finland, has production and R&D facilities in Europe, Asia and North America, and sales offices in 30 countries. Danfoss, a Danish company, employs 22,500 employees and serves customers in more than 100 countries. It is privately held by the founding family. Danfoss said it will position Finland as one of its future centers of excellence along with the other power electronics centers worldwide.