The match started relatively quietly and cautiously, but in the second round Özdemir got some real hits. Malmöson Latifi fell, and the 29-year-old Swiss was declared the winner of the knockout.
The victory in Montevideo is Özdemir's first after three straight losses.
The match was originally scheduled to take place at the UFC Gala in the Globe in Stockholm in early June, but the Swede then offered a rebate due to injury.