Danfoss has made an offer to buy Finnish AC drives company Vacon for approximately $1.34 billion in a deal that will strengthen the company’s Power Electronics division. Danfoss has offered Vacon shareholders a cash deal of €34 per share.

Danfoss Power Electronics and Vacon are both important players in the AC drives business, and together they will gain an even stronger market position. The move reflects the company’s strategy of positioning itself as a top player in each of the businesses in which it operates. The deal will also position Finland as one of Danfoss’ future centers of excellence along with the other power electronics centers worldwide.