Maxwell Technologies mainly focuses on ultracapacitors. The merger is expected to close in the second quarter of 2019.
Recently Tesla,the electric carmaker has acquired Maxwell Technologies,a US-based energy storage company based in the USA in an all-stock deal valued at $218 million.
As per the TechCrunch report,with this deal,Tesla is aiming to improve its batteries and lower costs as more competitors enter the market.
The offer will value each of Maxwell’s 45.9 million shares at $4.75 and the merger is expected to close in the second quarter of 2019.
Franz Fink, CEO and President, Maxwell has stated that they believe the 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.
Better batteries in future Tesla cars
Maxwell Technologies mainly focuses on ultracapacitors-energy storage devices that can charge and discharge rapidly,it can perform at a wide range of temperatures and have high power density and long operational life.
The dry electrode technology of Maxwell which is used to make the ultracapacitors can be applied to batteries of varying chemistries,which improves battery performance and is more cost-effective than the more commonly used wet electrode technology.
That application could give Tesla a boost in an increasingly competitive electric vehicle market.
In December, the company sold its high-voltage battery product line to Renaissance Investment Foundation for $55.1 million in cash and up to $15 million in potential future milestone payments.
