German engine manufacturer Deutz has agreed to acquire Dutch electrification specialist Urban Mobility Systems (UMS), expanding its capabilities in battery-electric drive systems for off-highway applications. The deal, which covers 100% of UMS and its parent company UMS Holding B.V., marks a strategic move by Deutz to strengthen its position in the growing market for alternative powertrains.
UMS, regarded as an innovation leader in electrification solutions, has successfully converted more than 200 machines—including excavators, wheel loaders and cranes—to electric power. The acquisition will allow Deutz to target new customer segments, particularly in transportation and logistics, while accelerating its research and development of electric propulsion technologies.
“By acquiring UMS, Deutz is accelerating the development of battery-electric drives for heavy-duty applications and will immediately facilitate the electrification of larger off-highway machines,” said Deutz CEO Dr. Sebastian C. Schulte. “We are thus taking a strategically important step under our Dual+ strategy and will play a key role in the consolidation of the market for internal combustion engines and for climate-friendly drives used to power large machines.”
The financial terms of the deal were not disclosed, though Deutz stated UMS recorded around €10 million in revenue in 2024 and expects “high-double-digit millions” in new orders. These orders, according to Deutz, are being placed by major customers seeking comprehensive electrification solutions.
UMS offers modular electrification kits featuring swappable batteries and retrofit capabilities for conventional engines. UMS CEO and CTO Lars Kool welcomed the acquisition, stating: “Deutz’s 161 years of industrial experience and its modern production network at major sites in Germany make it the ideal partner for automating battery assembly and the production of e-kits and ramping them up for mass distribution.”
Deutz has pursued a range of electrification initiatives in recent years, including a development partnership with Daimler Truck in 2023 and the previous ownership of electric boat manufacturer Torqeedo, which it sold to Yamaha. The latest move strengthens its focus on electrifying construction and heavy machinery sectors.