Ultralife Corp. (NASDAQ:ULBI) shares more than doubled Wednesday after the battery maker agreed to an all-cash acquisition by EnerSys (NYSE:ENS).
EnerSys will pay $16 per share in cash, a 166% premium to Ultralife’s unaffected closing price on Oct. 26. The deal values Ultralife at roughly $320 million, including the assumption of net debt.
- ULBI stock is soaring. See all the details here.
Ultralife, based in New York, makes rechargeable and non-rechargeable batteries, battery systems and accessories for military communications and other specialized uses.
The company reported $191 million in fiscal 2025 revenue and employs more than 700 people. Over the trailing 12 months, Ultralife posted a 39-cent-per-share loss on $187.2 million in revenue.
The chart below shows the one-year performance of ULBI stock:
EnerSys is betting on defense demand. The company said the purchase adds scale in munitions, soldier power, drones, counter-drone systems and autonomous systems. EnerSys CEO Shawn O’Connell described the acquisition as “a compelling strategic fit” for the company’s defense power strategy.
Ultralife CEO Michael Manna said the combination delivers “substantial and certain cash value to Ultralife shareholders.”
The numbers matter for EnerSys, too. The company expects $15 million to $20 million in annual run-rate cost synergies within the first 18 months and sees the deal adding to adjusted diluted earnings per share within about 18 months after closing.
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Deal Terms
EnerSys will fund the purchase with cash on hand, after both boards approved the deal unanimously. An EnerSys subsidiary will launch a tender offer for all outstanding Ultralife shares.
Closing requires the tender of at least a majority of outstanding shares plus regulatory approvals, with completion expected in the first quarter of calendar 2027. Once the deal closes, Ultralife stock will no longer trade on any public market.
Ultralife shares traded just below the $16 offer price Wednesday morning. A narrow gap like this one is common in pending cash deals, since the payout depends on regulators and a successful tender.
ULBI Stock Price Activity: Ultralife stock was up 145.75% at $15.63, and EnerSys shares were down 0.21% at $173.80 at the time of publication Wednesday, according to Benzinga Pro market data.
Photo: Pixel Media Design / Shutterstock
