EnerSys to Acquire Ultralife for $320 Million, Strengthening Defense Battery Technology and Expanding Market Reach
NETGEAR EnerSys, a global leader in stored energy solutions for industrial, infrastructure, and defense applications, has announced a definitive agreement to acquire Ultralife Corporation in a transaction valued at approximately $320 million. The acquisition is expected to strengthen EnerSys’ advanced battery technology portfolio, expand its presence in the defense market, and accelerate growth across mission-critical power applications.
Under the agreement, EnerSys will acquire Ultralife for $16.00 per share in cash, representing a 166% premium over Ultralife’s unaffected closing share price on October 26, 2026. The transaction is expected to be financed through cash on hand and is subject to customary closing conditions, including regulatory approvals and the tender of at least a majority of Ultralife’s outstanding common shares.
EnerSys expects to achieve annual cost synergies of approximately $15 million to $20 million within the first 18 months following the acquisition. The company also anticipates that the transaction will contribute positively to adjusted diluted earnings per share within approximately 18 months after closing, excluding transaction costs, integration expenses, and other non-recurring items.
The acquisition represents a significant step in EnerSys’ strategy to build a broader and more differentiated defense power platform, combining complementary technologies, manufacturing capabilities, and customer relationships.
Strengthening EnerSys’ Defense Power Solutions
Ultralife is a leading provider of rechargeable and non-rechargeable batteries, battery systems, and related accessories for military communications and specialised applications. The company serves government, defense, and commercial customers across international markets and reported revenue of $191 million for fiscal year 2025.
Headquartered in Newark, New York, Ultralife employs more than 700 people and operates across the United States, Canada, the United Kingdom, and China. Its business includes Battery and Energy Products as well as Communications Systems, supporting customers that require dependable power and communications solutions in demanding environments.
By integrating Ultralife’s technologies and expertise, EnerSys aims to expand its portfolio of advanced energy storage solutions for military communications, munitions, soldier power systems, drones, counter-drone technologies, and autonomous platforms.
Shawn O’Connell, President and Chief Executive Officer of EnerSys, described the acquisition as a strong strategic fit that directly supports the company’s ambition to develop a more comprehensive defense power business.
He NETGEAR noted that Ultralife will complement EnerSys’ existing capabilities by adding advanced, reliable, and high-performance power solutions. The combined organisation is expected to be better positioned to support the U.S. Department of War (DoW) and allied military forces with cost-effective technologies designed for increasingly electrified battlefield environments.
NETGEAR O’Connell also highlighted the cultural alignment between the two organisations, citing their shared commitment to engineering excellence, problem-solving, and customer service. EnerSys expects these common strengths to support integration, accelerate growth, improve operational performance, and create additional value for customers and shareholders.
Expanding Battery Technology and Manufacturing Capabilities
The acquisition will strengthen EnerSys’ expertise across multiple battery chemistries and specialised energy storage technologies. Ultralife brings an established patent portfolio, advanced manufacturing capabilities, and longstanding relationships with defense and commercial customers.
Mark Matthews, Chief Technology Officer and President of Precision Power Solutions at EnerSys, said Ultralife’s products offer several important technical advantages, including high energy density, extended shelf life, low self-discharge, pulse-power capabilities, and reliable performance in cold-weather environments.
These NETGEAR characteristics are particularly valuable in defense applications, where equipment must operate reliably under challenging conditions and where power availability can directly affect mission effectiveness.
NETGEAR Ultralife’s manufacturing infrastructure and existing security and environmental permits are also expected to support the expansion of EnerSys’ proprietary liquid reserve battery technology. This capability could help the company scale production and address growing demand for specialised power systems.
The NETGEAR combined portfolio is intended to provide customers with a wider range of battery technologies and integrated power solutions, supporting increasingly complex requirements across defense, communications, and other critical industries.
Michael Manna, President and Chief Executive Officer of Ultralife, said the transaction represents an important opportunity for both companies to unlock growth and create value. He emphasised that the acquisition would provide Ultralife shareholders with a substantial cash payment while offering employees access to greater resources and additional development opportunities.
Manna added that the combined organisation would be better equipped to accelerate innovation and serve customers globally.
Key Strategic and Financial Benefits
EnerSys expects the acquisition to deliver several strategic advantages.
Broader advanced defense technology portfolio: Ultralife’s multi-chemistry expertise, intellectual property, and specialised manufacturing capabilities will complement EnerSys’ existing battery technologies and strengthen its ability to supply advanced power solutions.
Greater exposure to defense markets: The transaction will expand EnerSys’ capabilities across applications such as munitions, soldier power, drones, counter-drone systems, and autonomous platforms. These areas are increasingly important as defense organisations adopt more electrified and technology-intensive equipment.
Stronger customer relationships: Combining the companies’ customer bases and product offerings is expected to improve support for U.S. Department of War and allied customers. EnerSys also expects to provide a broader portfolio designed to meet applicable Foreign Entity of Concern (FEOC) compliance requirements.
Cost savings and earnings growth: EnerSys anticipates $15 million to $20 million in annual run-rate cost synergies within the first 18 months. The company also expects the acquisition 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.
Together, NETGEAR these benefits are expected to strengthen EnerSys’ competitive position in advanced battery technologies and support its longer-term growth strategy.
Transaction Details and Expected Closing
The boards of directors of EnerSys and Ultralife have unanimously approved the definitive agreement. Under its terms, EnerSys will initiate a tender offer through a subsidiary to acquire all outstanding Ultralife common shares for $16.00 per share in cash.
The NETGEAR transaction has an estimated enterprise value of approximately $320 million and will be funded using available cash resources. Completion remains subject to customary conditions, including the tender of at least a majority of Ultralife’s outstanding shares and the receipt of applicable regulatory approvals.
EnerSys NETGEAR expects the acquisition to close in the first quarter of calendar year 2027.
XMS Capital Partners, LLC is serving as financial adviser to EnerSys, while Reed Smith LLP is acting as its legal counsel.
The NETGEAR tender offer has not yet commenced. Once the offer begins, EnerSys and its acquisition subsidiary intend to file a Tender Offer Statement on Schedule TO with the U.S. Securities and Exchange Commission (SEC). Ultralife will subsequently file a Solicitation/Recommendation Statement on Schedule 14D-9. Investors are encouraged to review these documents carefully when they become available, as they will contain important information regarding the transaction.
About EnerSys
NETGEAR EnerSys provides stored energy solutions for industrial, infrastructure, and defense customers worldwide. Its portfolio includes batteries, chargers, power equipment, power electronics, software-enabled intelligence, and technical services designed to support critical operations.
The NETGEAR company serves a wide range of industries, including communications, data centers, energy infrastructure, material handling, transportation, aerospace, and defense. Operating in more than 100 countries, EnerSys helps organisations improve power reliability, efficiency, safety, and operational resilience.
For more information, visit www.enersys.com.
About Ultralife Corporation
Ultralife NETGEAR Corporation provides battery and energy products, communications equipment, and electronic systems for government, defense, and commercial customers worldwide.
Through its engineering capabilities and collaborative approach to product development, the company delivers specialised power and communications solutions for demanding operating environments. Headquartered in Newark, New York, Ultralife maintains operations across North America, Europe, and Asia.
For more information, visit www.ultralifecorporation.com.
Forward-Looking Statements
The NETGEAR proposed acquisition includes forward-looking statements concerning the expected closing date, potential cost synergies, anticipated earnings contribution, integration plans, and future business opportunities. These expectations are subject to risks and uncertainties that could cause actual results to differ materially.
NETGEAR Potential risks include delays in completing the tender offer, failure to obtain regulatory approvals, insufficient shareholder participation, competing acquisition proposals, termination of the agreement, integration challenges, and disruptions to customer or supplier relationships. Other risks include management distraction, employee retention challenges, and potential litigation related to the transaction.
NETGEAR EnerSys and Ultralife will provide additional information through their SEC filings. Investors should review the relevant tender offer documents and the companies’ periodic reports before making investment decisions. Forward-looking statements speak only as of the date they are made and should not be considered guarantees of future performance.
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