Ultralife shares more than doubled Wednesday after the battery maker agreed to be acquired by EnerSys in an all-cash transaction. The acquisition values Ultralife at approximately $320 million when assumed net debt is included. EnerSys will pay shareholders $16 per share in cash. The offer represents a 166% premium over Ultralife's unaffected closing price on October 26.
Both companies' boards unanimously approved the transaction. EnerSys will use existing cash to finance the acquisition. A subsidiary of EnerSys will begin a tender offer covering every outstanding Ultralife share. Completion requires shareholders to tender at least a majority of outstanding shares, alongside regulatory approvals. The transaction is expected to close in the first quarter of calendar 2027. Ultralife shares will cease trading on all public markets after completion.
EnerSys said the acquisition will expand the company's scale in munitions, soldier power, drones, counter-drone systems and autonomous systems. EnerSys CEO Shawn O'Connell called the acquisition "a compelling strategic fit" for the company's defense power strategy. Ultralife CEO Michael Manna said the transaction provides "substantial and certain cash value to Ultralife shareholders."
EnerSys forecasts annual run-rate cost synergies of $15 million to $20 million within the first 18 months. EnerSys expects the acquisition to increase adjusted diluted earnings per share within about 18 months following completion.
New York-based Ultralife produces rechargeable and non-rechargeable batteries, battery systems and accessories for military communications and other specialized applications. Ultralife reported revenue of $191 million for fiscal 2025. Ultralife employs more than 700 people. Ultralife recorded a loss of 39 cents per share on revenue of $187.2 million over the trailing 12 months.
Ultralife shares traded slightly below the $16 offer on Wednesday morning. Such small discounts are common in pending cash acquisitions because payment remains dependent on regulatory clearance and a successful tender offer. Benzinga Pro market data showed Ultralife shares up 145.75% at $15.63 at publication Wednesday. The same data showed EnerSys shares down 0.21% at $173.80.
Ultralife Shares Surge Over 145% After EnerSys Announces $320M Cash Buyout
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Summary
Ultralife shares jumped over 145% to $15.63 on October 28, driven by on-chain news of EnerSys’s $320M cash buyout. The deal values the battery maker at $16 per share, a 166% premium over its October 26 close. Both boards approved the transaction, which is expected to close in early 2027. EnerSys said the move will boost defense power capabilities and create $15–20M in annual cost synergies. Investors tracking crypto price news may see ripple effects in related sectors.
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