Battery maker Ultralife soars 145% on takeover by rival EnerSys

Battery systems maker Ultralife soared 145% on Wednesday. Rival EnerSys has agreed to acquire it at a premium, seeking to boost battery sales for drones and military equipment.

Ultralife shares jumped 145.4% on the Nasdaq on Wednesday to $15.61 apiece. EnerSys closed down 1.56%.

EnerSys will acquire Ultralife for $16 per share, the company announced. That represents a 166% premium to Ultralife’s closing price on Monday. The transaction has an enterprise value, including the assumption of net debt, of around $320 million, according to Ultralife’s press release.

The deal has been approved by both companies’ boards and is expected to close in the first quarter of next year. Completion is subject to regulatory approvals and the tender of a majority of Ultralife’s outstanding shares. Ultralife will then be delisted.

Ultralife manufactures non-rechargeable and rechargeable batteries and communications systems for military and civilian customers. Its revenue rose 16.2% in 2025 to $191.2 million. By the end of the second quarter of 2026, its order book had reached a record $117.5 million.

The acquisition will allow EnerSys to broaden its battery offerings for drones, counter-drone systems, munitions, and other military equipment. The management expects annual cost savings to reach $15-20 million within the first 18 months after closing. The acquisition is also expected to start contributing to EnerSys’ adjusted diluted earnings per share within around the same period, excluding transaction and integration costs and other nonrecurring items.

Ultralife has one “buy” rating from an analyst, whose target price is below the current market price. EnerSys has six “buy” calls versus one “hold.” The average target price of $263.75 per share implies around 54% upside from Wednesday’s close.