Maxwell Technologies has agreed to acquire Nesscap Energy for $23.175 million, or about 1.1 times Nesscap’s annualized revenue. The purchase price will be paid by the issuance of approximately 4.6 million Maxwell shares. Nesscap has operations in Korea, Germany, and China.

As a specialist in small cell format ultracapacitor products, Nesscap provides R&D and manufacturing of energy storage solutions that complement Maxwell’s large cell format ultracapacitor product portfolio. Maxwell expects to capitalize on synergies to accelerate growth and earnings, increase innovation, and expand its product portfolio.

In the automotive market, the acquisition brings pre-existing designs and revenue in back-up power, extends Maxwell’s reach in the market. Maxwell also expects Nesscap’s solid position in small cell-based product solutions to broaden opportunities in the industrials market.

The company expects to improve its margins thanks to economy of scale and materials cost savings, a streamlined supply chain, and gains in operational efficiency from combined manufacturing.

Source: Maxwell Technologies via Green Car Congress