Cummins Inc. announced that it is acquiring Silicon Valley-based Efficient Drivetrains Inc. (EDI), a designer and producer of hybrid and fully-electric power solutions for commercial markets. Adding EDI to the Cummins portfolio is the latest step forward in Cummins’ efforts to become a global electrified power leader.

“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, in a press release. “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 began developing its electrification capabilities more than a decade ago. During the past nine months, it accelerated investment in the business when it undertook by acquiring of U.K.-based Johnson Matthey Battery Systems and North America-based Brammo. Upon the addition of its fully-electric and unique four-mode hybrid powertrains, EDI will broaden Cummins’ electrification expertise and products. EDI’s hybrid system is very versatile, able to switch, in real time, between fully electric, series and parallel modes.

“The closing of the acquisition of EDI is subject to the satisfaction of customary closing conditions and is expected to close in the third quarter.