Cummins is acquiring Silicon Valley-based Efficient Drivetrains Inc (EDI), which designs and produces hybrid and fully-electric power solutions for commercial markets, in a move intended to further its goal of becoming a global electrified leader, the company said.
The closing of the acquisition is subject to the satisfaction of customary closing conditions and is expected to occur in the third quarter.
“As power needs and technologies continue to evolve, Cummins remains committed to innovations that will deliver the right power solutions for the right applications at the right time to help our customers’ succeed,” said Tom Linebarger, chairman and CEO of Cummins.
“This acquisition will combine EDI’s talented workforce and electrification capabilities with Cummins’ expertise in developing and manufacturing the technologies that power the world.”
Cummins recently began accelerating investment in its electrification capabilities, as evidenced by the earlier acquisitions of UK-based Johnson Matthey Battery Systems and North America-based Brammo. The addition of EDI’s fully electric and unique four-mode powertrains continues the company’s efforts to broaden its electrification products.
EDI’s hybrid system is the most versatile on the market today, Cummins said, able to switch, in real time, between fully electric, series and parallel modes.
“As the industry continues to evolve and OEMs move to include hybrid and electric technologies in their vehicle offerings, the combination of Cummins and EDI represents a tremendous opportunity for growth and category leadership,” said Joerg Ferchau, EDI’s chairman and CEO. “EDI’s advanced portfolio of plug-in-hybrid and full electric technologies paired with Cummins’ industry leadership and focus on innovation will allow us to deliver best-in-class products, service and support worldwide.
“Vehicle OEMs and fleets evaluating new electric and hybrid technologies prefer to work with well-established companies that have the depth and resources to provide the support that’s needed to scale into high volume mass production.
“Together, we can lead the electrification category, and provide exciting new options that the market will embrace.”