UKSE is the Tata Steel subsidiary set up to assist growing companies in traditional steel areas.
ID Systems works in the industrial and commercial utilities sector from its offices in Grangemouth and Glasgow.
Its clients include Scottish Water, Forestry Commission and National Grid.
The company, which already employs 80 staff, is looking to create the new jobs in the Glasgow and Lanarkshire areas as part of an expansion drive..
The move comes after ID Systems secured a number of long-term projects, including off-site manufacturing of wastewater pumping stations and water booster sets.
The loan and equity backing from UKSE will help fund ID System's growth strategy. A new senior management team will be created which, along with UKSE, will have a shareholding in the company.
ID Systems finance director Stuart Devine said: "We had a tremendous opportunity to more than double the workforce with the recent contract win and this funding from UKSE will allow us to make that happen as smoothly as possible."
UKSE regional executive Scott Webb said: "This long-standing, growing business will now have the structure to continue expansion along with the necessary funding from UKSE to allow this to happen."
Scottish engineering services company ID Systems Ltd has announced plans to create 120 new jobs after securing a six-figure investment from UK Steel Enterprise (UKSE).