Shares of battery manufacturer Ultralife soared 145%: a competitor is set to acquire it

Shares of battery system manufacturer Ultralife soared 145% on Wednesday, October 28. Rival battery manufacturer EnerSys is acquiring Ultralife at a premium to market value, hoping to boost sales of batteries for drones and military equipment.

Ultralife shares rose 145.4% to $15.61 during trading on the Nasdaq on October 28.

EnerSys's stock price fell 1.56% at the close of trading.

EnerSys is acquiring Ultralife at a price of $16 per share, the company announced. This is 166% higher than Ultralife’s closing share price on Monday, October 26, prior to the announcement of the deal. Its value is estimated at approximately $320 million, including the company’s net debt (enterprise value), according to an Ultralife press release.

The transaction has been approved by the boards of directors of both companies and is expected to close in the first quarter of 2027. For the transaction to proceed, regulatory approvals must be obtained and a majority of Ultralife’s outstanding shares must be tendered. After that, Ultralife’s shares will no longer be traded on the stock exchange.

Ultralife manufactures batteries, rechargeable batteries, and communication systems for military and civilian customers. In 2025, the company's revenue grew by 16.2% to $191.2 million. By the end of the second quarter of 2026, its order backlog reached a record $117.5 million.

The acquisition will enable EnerSys to expand its offering of batteries for drones, counter-drone systems, ammunition, and other military equipment. The company expects to achieve annual cost savings of $15–20 million within the first 18 months after the deal closes. Around the same time, the acquisition is expected to begin boosting EnerSys’s adjusted diluted earnings per share—excluding transaction costs, integration expenses, and other one-time items.

Ultralife has one "buy" rating from an analyst; the average price target is below the current market price.

Six analysts recommend buying EnerSys stock, while one more recommends holding it. The average price target is $263.75, nearly 54% higher than the closing price on October 28.