Tesla buys battery technology company Maxwell for $218 million

US-based electric car maker Tesla on Tuesday acquired energy storage company Maxwell Technologies in an all-stock deal valued at USD 218 million. The offer will value each of Maxwell's 45.9 million shares at USD 4.75.

"Tesla will commence an all stock exchange offer for all the issued and outstanding shares of the company, after which Maxwell will be merged with a Tesla subsidiary and become a wholly owned subsidiary of Tesla," Maxwell Technologies said in a press release.

The offer will value each share of Maxwell common stock at USD 4.75 per share, the company said.

While there can be no assurances on the closing date, the company anticipates that the merger will be consummated in the second quarter of 2019, or shortly thereafter, should all conditions be met and subject to the timing of the aforementioned approvals, Maxwell Technologies added.

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The directors and certain officers of Maxwell and I2BF Energy Limited have agreed to tender all of their Maxwell shares in the Offer, which in the aggregate represent approximately 7.56% of the outstanding shares of Maxwell common stock.

Commenting on the development, Maxwell President and Chief Executive Officer, Franz Fink said, "We are very excited with today's announcement that Tesla has agreed to acquire Maxwell. Tesla is a well-respected and world-class innovator that shares a common goal of building a more sustainable future."

"We believe this 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."

DLA Piper, LLP (US) represented Maxwell as outside legal counsel, and Barclays Capital Inc. served as independent  advisor to Maxwell in connection with the transaction.  Wilson Sonsini Goodrich & Rosati represented Tesla as outside legal counsel.

Edited by Chitranjan Kumar