In a proclaimed mission to accelerate the world’s transition to sustainable energy, Tesla plans to acquire energy technology company, Maxwell Technologies, for about $218 million. This price represents a 55% premium over Maxwell’s Friday’s closing stock price of $3.07 a share.
Valued at $4.75 a share, Tesla would buy 45.9 million shares of the company in an all-stock transaction.
Maxwell is an ultra-capacitors making company, devices that store and deliver volumes of energy. The move to acquire Maxwell’s shares may not come as a surprise, given Tesla’s CEO’s commitment to technology-driven electric cars (versus batteries) which he sees as a likely breakthrough.
Further, Maxwell is reputed to build electric battery components that are significantly cost and energy efficient compared to those typically used in the industry.
This cost reduction is consistent with Tesla’s mission of lowering electronic vehicle prices, in order to widen its addressable market while maintaining margins. To achieve this end Tesla needs to strike a balanced combination of battery cost, weight, and performance as key drivers.