Key Highlights

  • ULBI shares are indicated up 144.66% at $15.56 in premarket, against a prior close of $6.36.
  • EnerSys will pay $16.00 per share in cash, a 166% premium to the unaffected October 26 close.
  • The deal carries an enterprise value of about $320 million.
  • Closing is expected in the first quarter of calendar 2027 through a tender offer.
  • EnerSys expects $15 million to $20 million of annual run-rate cost synergies within 18 months.

Ultralife (NASDAQ:ULBI) shares are indicated up 144.66% at $15.56 in premarket after EnerSys (NYSE:ENS) agreed to acquire the battery maker for $16.00 per share in cash. The price is a 166% premium to Ultralife's unaffected closing price on October 26, and the transaction carries an enterprise value of about $320 million. Shares closed Tuesday at $6.36, up 5.82%, and the premarket price sits about 2.8% below the offer.

Ultralife, headquartered in Newark, New York, makes power, communications and electronics systems through two segments. Battery and Energy Products supplies lithium and rechargeable batteries, battery systems, uninterruptible power supplies and rugged charging systems, while Communications Systems provides RF amplifiers, power supplies, cables and integrated communication systems for military and other customers. It generated $191 million of revenue in fiscal 2025 and is led by CEO Michael Manna.

Deal Terms and Timeline

EnerSys will fund the purchase with cash on hand. Both boards unanimously approved the agreement, and EnerSys, through a subsidiary, will commence a tender offer for all outstanding Ultralife shares. The deal requires that at least a majority of outstanding shares be tendered and that regulatory approvals be received, and it is expected to close in the first quarter of calendar 2027.

EnerSys expects the deal to be accretive to adjusted diluted EPS within about 18 months after closing, excluding transaction and integration costs and other non-recurring items.

Strategic Rationale

EnerSys is targeting the growing defense market, including munitions, soldier power, drones, counter-drone and autonomous systems. Ultralife adds multi-chemistry capabilities, purpose-built manufacturing capacity with existing security and environmental permits, and operational expertise to scale production of EnerSys' proprietary liquid reserve battery technology. The combination also broadens a compliant product portfolio for the U.S. Department of War and allied customers.

"Combining with EnerSys is an exciting next step that will allow us to unlock value and growth opportunities for both companies, while delivering substantial and certain cash value to Ultralife shareholders," Manna said.

What Investors Should Watch

With shares near the offer price, trading will likely track the odds of closing and the timing of the tender offer. Risks include a shortfall in tendered shares, regulatory approvals, a competing offer and termination of the agreement. The 52-week range before the news ran from $4.90 to $8.25.