Ultralife Corp. (NASDAQ:ULBI) shares surged more than 144.65% to $15.56 in after-hours trading on Tuesday after the company agreed to be acquired by stored energy systems and technology provider EnerSys (NYSE:ENS) in an all-cash deal valued at about $320 million.
After the market closed on Tuesday, the New York-based technology company announced the merger agreement.
$16 Cash Per Share Marks a 166% Premium
According to the company, Ultralife shareholders will receive $16 in cash per share, a 166% premium to the Monday close.
The $320 million enterprise value includes the assumption of net debt.
Both boards approved the deal unanimously. EnerSys will fund it with cash on hand, so there is no financing contingency.
Defense Power Push
Ultralife said in its press release that the deal would broaden exposure to the large and rapidly growing defense market, including munitions, soldier power, drones, counter-drone and autonomous systems. It also adds Ultralife’s multi-chemistry battery capabilities and permitted manufacturing capacity to scale EnerSys’ liquid reserve battery technology.
The combined portfolio would also be Foreign Entity of Concern (FEOC)-compliant.
Shawn O’Connell, president and CEO of EnerSys, said, "This acquisition is a compelling strategic fit for EnerSys and directly advances our strategy to build a broader, more differentiated defense power platform."
Ultralife President and CEO Michael E. Manna said the deal delivers "substantial and certain cash value" to shareholders.
Trading Metrics, Technical Analysis
| Metric | Ultralife | EnerSys |
|---|---|---|
| Market Capitalization | $105.98 million | $6.28 billion |
| 52-Week Range | $4.91–$8.25 | $120.27–$244.30 |
| Shares Outstanding | 16.66 million | 36.07 million |
The Relative Strength Index (RSI) of ULBI stands at 55.96.
The stock has fallen 8.75% over the past 12 months.
Price Action: In the regular session on Tuesday, the small-cap stock closed at $6.36, up 5.82%, according to Benzinga Pro data.
Benzinga’s Edge Stock Rankings indicate Ultralife stock has a negative price trend across all time frames.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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