EnerSys (NYSE: ENS) has agreed to acquire Ultralife (NASDAQ: ULBI) in an all-cash transaction valued at approximately $320 million, expanding its battery technology portfolio and strengthening its position in the defense market.
Under the definitive agreement announced October 27, EnerSys will pay $16 per share for Ultralife, representing a 166% premium to Ultralife’s closing share price on October 26, before the announcement. The transaction will be funded with cash on hand and is expected to close in the first quarter of calendar 2027, subject to customary closing conditions and regulatory approvals.
The acquisition would add Ultralife’s rechargeable and non-rechargeable batteries, battery systems and accessories to EnerSys’ stored-energy business. Ultralife supplies military communications equipment and other specialized applications, serving government, defense and commercial customers worldwide.
EnerSys expects the combination to generate $15 million to $20 million in annual run-rate cost synergies within the first 18 months. The company also expects the deal to become accretive to adjusted diluted earnings per share within approximately 18 months after closing, excluding transaction and integration costs and other non-recurring items.
Expanding Defense Power Capabilities
The acquisition supports EnerSys’ strategy to build a broader portfolio of power solutions for defense customers, including the U.S. Department of War and allied military forces.
“Building on the success of our recent acquisitions, Ultralife expands our portfolio of advanced, reliable, high-performance power solutions,” said Shawn O’Connell, president and CEO of EnerSys.
He said the combined business would be positioned to supply technologies for an increasingly electrified battlefield, where military platforms and personnel rely on dependable power for communications, sensing, mobility and other mission-critical functions.
Ultralife’s products are designed for applications requiring high energy density, long shelf life, low self-discharge, pulse power and performance in cold environments. These characteristics can be important for military equipment that must remain operational after extended storage or operate under demanding field conditions.
Mark Matthews, EnerSys’ chief technology officer and president of Precision Power Solutions, said Ultralife’s technologies and patent portfolio would complement EnerSys’ multi-chemistry expertise and liquid reserve battery technologies.
The companies also expect Ultralife’s manufacturing infrastructure and operational expertise to support production growth, including the scaling of EnerSys’ proprietary liquid reserve battery technology.
Ultralife Adds Revenue and Manufacturing Scale
Headquartered in Newark, New York, Ultralife generated $191 million in revenue in fiscal 2025 and employs more than 700 people. Its principal operations span the United States, Canada, the United Kingdom and China.
The business brings established relationships with military, government and commercial customers, alongside manufacturing capabilities for specialized battery applications.
EnerSys said the combination would broaden its exposure to defense markets covering munitions, soldier power, drones, counter-drone systems and autonomous platforms. These applications increasingly require compact, reliable power sources suited to demanding operating environments.
The companies also highlighted the potential to offer a broader portfolio of products compliant with Foreign Entity of Concern (FEOC) requirements for U.S. Department of War and allied customers. Such compliance considerations can influence sourcing and supplier selection in strategically sensitive industries.
Ultralife CEO Michael Manna said the transaction would provide shareholders with cash consideration while giving the combined business greater resources to pursue growth and product development.
Tender Offer and Closing Conditions
The boards of directors of both companies have unanimously approved the transaction. EnerSys plans to acquire Ultralife through a subsidiary that will launch a tender offer for all outstanding common shares at $16 per share in cash.
Completion remains subject to customary conditions, including the tender of at least a majority of Ultralife’s outstanding shares and applicable regulatory approvals. The companies expect the transaction to close in the first quarter of 2027.
XMS Capital Partners is serving as financial adviser to EnerSys, while Reed Smith is acting as its legal counsel.
The deal’s expected financial benefits will depend on integration execution and the realization of projected cost savings. If completed as planned, the acquisition would give EnerSys additional battery technologies, manufacturing capacity and customer relationships as it expands its defense-focused power business.
