Tesla announced it will acquire the battery technology firm Maxwell Technologies for around $218 million.
Maxwell develops energy storage and power delivery solution-related products. The company’s primary focus is on ultracapacitors that can be applied to the manufacturing of batteries.
Tesla said it will buy Maxwell’s 45.9 million shares at $4.75 a share in an all-stock transaction. The price represents a 54.7% to Maxwell’s closing price of $3.07 on Friday and values the company at around $218 million.
Maxwell will operate as a wholly owned Tesla subsidiary.
“We are very excited with today’s announcement that Tesla has agreed to acquire Maxwell. Tesla is a well-respected and world-class innovator that shares a common goal of building a more sustainable future,” said Maxwell CEO Franz Fink.
“We believe this transaction is in the best interests of Maxwell stockholders and offers investors the opportunity to participate in Tesla’s mission of accelerating the advent of sustainable transport and energy.”
According to CNBC, Tesla in a statement: “We are always looking for potential acquisitions that make sense for the business and support Tesla’s mission to accelerate the world’s transition to sustainable energy,”
Maxwell said in a news release that it anticipates that the merger will be consummated in the second quarter of 2019, or shortly thereafter.
The closing of the transaction is subject to the successful tender and exchange of shares, certain regulatory approvals and customary closing conditions.
