Dutch-based Urban Mobility Systems acquired by Cologne’s DEUTZ

Cologne-based DEUTZ, an engine company, has signed an agreement to acquire 100 per cent of the shares in Dutch-based Urban Mobility Systems (UMS) and its parent company, UMS Holding BV.

UMS specialises in the electrification of off-highway vehicles. The acquisition supports the growth of DEUTZ’s “New Technology” segment and aims to strengthen the company’s position in alternative drive systems.

Completion of the acquisition is subject to customary conditions, including regulatory approvals, and is expected in the coming months.

Enabling zero-emission construction machinery and mobility solutions

Founded in 2016 by Lars Kool, UMS produces electric powertrain systems that convert construction equipment and vehicles to electric operation. As an original equipment manufacturer (OEM), UMS offers systems that can be produced at scale and integrated into regular manufacturing processes.

The company works with manufacturers, distributors, and fleet operators to support their move away from fuel-powered machines. UMS aims to accelerate the shift toward mobility solutions that do not produce emissions, helping industries reduce their environmental impact.

The Dutch company has electrified more than 200 machines, including excavators, wheel loaders, and cranes. In 2024, it generated revenue of nearly €10M. New orders, placed by large customers using UMS as a single source for machine electrification, are expected to reach high-double-digit millions.

Lars Kool, CEO and CTO, says, “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.”

Aim of the acquisition

By acquiring UMS, DEUTZ can expand into transportation and logistics markets and speed up its work on alternative drive technologies. 

UMS offers electrification kits that fit into the existing engine compartments of machines, avoiding the need for costly and time-consuming redesigns. These kits can be installed on new machines using current production lines or retrofitted to older models.

UMS systems use batteries that can be removed and replaced. For example, in excavators, the battery fits where the counterweight usually goes and can be swapped in under ten minutes. This setup helps reduce operating costs for equipment used in tasks like construction or farming. 

For larger machines, combining UMS batteries with small DEUTZ combustion engines in a hybrid system allows for easier electrification.

UMS’s technology may also be used in military applications. Initial studies have explored using hybrid systems in vehicles like the Bushmaster troop carrier, where the quieter electric drive can offer tactical advantages.

DEUTZ plans to carry out most of the production and scaling of UMS technologies at its locations in Germany. This move will strengthen DEUTZ’s ability to develop and produce battery-electric drive systems.

DEUTZ CEO Dr Sebastian C. Schulte, says, “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.”

“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.”

Bert van Hasselt, CEO of DEUTZ New Technology, adds, “By purchasing UMS, we are taking a technological leap forward and saving both time and resources. Moreover, our expertise in industrialisation will enable the UMS technology to be scaled up.” 

“This acquisition underpins our strategy to offer the best products in the market to our customers, now and in the future.”

Brief about DEUTZ

Founded in 1864, DEUTZ AG, based in Cologne, Germany, is a global manufacturer of drive systems for off-highway applications up to 620 kW. The publicly traded company offers diesel, gas, hydrogen, and electric drive systems for use in construction, agriculture, material handling, stationary equipment, commercial vehicles, and rail transport. 

In 2024, DEUTZ acquired Blue Star Power Systems, Inc. to expand its presence in decentralised energy supply and further develop its role as a system provider. 

The company also provides a range of services through a global network of around 1,000 partners in over 120 countries. DEUTZ employed nearly 5,200 people and recorded revenue of €1.8B in 2024.