Tesla is set to buy a company specialising in ultracapacitor technology that improves battery performance in electric cars.
Tesla has acquired Maxwell Technologies in a cash and shares transaction that values Maxwell at $218m. Under the deal Maxwell will become a wholly-owned subsidiary of Tesla.
It is anticipated the merger will be completed in the second quarter of 2019, said Maxwell. Maxwell's shares rose 49% following the announcement, according to Nasdaq.
Maxwell Technologies patented a dry electrode manufacturing technology that enables the efficient production of ultracapacitors, which are capable of storing and discharging energy very quickly and effectively for a primary energy source. This technology is beneficial to Tesla, as innovative solutions will help reduce the production costs of EVs.
Franz Fink, president and chief executive officer of Maxwell, said: "Tesla is a well-respected and world-class innovator that shares a common goal of building a more sustainable future.
"We believe this transaction is in the best interests of Maxwell stockholders and offers investors the opportunity to participate in Tesla's mission of accelerating the advent of sustainable transport and energy."
Elon Musk, Tesla CEO, has been a long-time supporter of the ultracapacitor technology, describing himself as a "big fan".
The deal is subject to shareholder and regulatory approval.
☛ Want to stay up to date with the news? Sign up to our daily bulletin.