Tesla Will Acquire Maxwell Technologies for Around $218 Million

11:24 02/10/2019

Tesla announced big plans this month to acquire energy technology company Maxwell Technologies for roughly $218 million, in an all-stock transaction.

The electric vehicle maker will be purchasing Maxwell Technologies' 45.9 million shares for $4.75 a share, representing a 55% premium to Maxwell's closing price on February 1st of $3.07 a share.

Maxwell Technologies makes ultracapacitors that store and deliver energy. Tesla's CEO Elon Musk is a fan of the ultracapacitors and has tweeted in the past that he had plans to conduct research on the ultracapacitors at Stanford University.

"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," stated Tesla to CNBC.

“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 Dr. Franz Fink, President and Chief Executive Officer of Maxwell.

“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," continued Dr. Fink.

"As TSLA works toward lowering EV prices to expand its addressable market while maintaining [gross margins], we view battery cost, weight, and performance as the key drivers," said Oppenheimer analyst Colin Rusch.

According to Rusch, Maxwell's intellectual property in manufacturing "plus applications for its ultracapacitor technology seem likely to be integral in evolving TSLA's pack design and performance, particularly in heavier vehicles that rely on regenerative braking for system economics."


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