INTERNATIONAL – Tesla is buying Maxwell Technologies for $218 million (R2.9 billion) in an all-stock deal that will help the electric car maker beef up its battery technology at a time when it is ramping up production of its crucial Model 3 sedan.
Maxwell, whose customers include General Motors and Lamborghini, makes ultracapacitors that are used in automobile batteries to lengthen their lives. They are also used for electric energy storage on power grids.
Improved power storage is critical to two of Tesla’s main products - electric cars and backup power for homes and power utilities.
“We are always looking for potential acquisitions that make sense for the business and support Tesla’s mission to accelerate the world’s transition to sustainable energy,” a Tesla spokesperson said on Monday.
The offer values each Maxwell share at $4.75, representing a 55 percent premium to the stock’s closing price on Friday, the companies said. Maxwell shares rose to trade at $4.72.