Ultralife acquires UK company for about $11 million

NEWARK, N.Y. — Ultralife Corp. (NASDAQ: ULBI), a Wayne County–based maker of batteries and communications systems, announced it has acquired United Kingdom–based Accutronics Ltd., for about $11 million (or 7.575 million British pounds) in cash as it seeks to boost revenue and expand its market reach.

The deal’s final value is subject to customary working capital and net cash/debt adjustments, according to an Ultralife news release.

Based in Newcastle-under-Lyme, UK, Accutronics is an independent designer and manufacturer of smart batteries and charger systems for high-performance, portable and handheld electronic devices.

Accutronics primarily serves the portable medical-device market throughout Europe. Its products and services include custom battery design, development and manufacturing for original-equipment manufacturers (OEMs); standard smart batteries, chargers and accessories; and pre-engineered batteries and power solutions for specific applications, the release stated. Medical applications include digital imaging, ventilators, anaesthesia, endoscopy, patient monitoring, cardio pulmonary care, oxygen concentration, and aspiration.

For its fiscal year ended Aug. 31, 2015, Accutronics generated revenue of about $12.5 million.

Ultralife says it expects the transaction to add to its earnings within 12 months.

“To further drive the proven operating leverage of our business model, we are focused on revenue growth from new product development and market and sales reach expansion, while seeking acquisitions that enhance our organic growth opportunities. Accutronics, a well-run, profitable company with a compatible business model, growth profile and management approach, is a great bolt-on fit to our Battery and Energy Products business unit,” Michael D. Popielec, Ultralife’s president and CEO, said in the release. “Acquiring Accutronics advances our strategy of commercial revenue diversification and expands our geographic reach within European OEMs.”

Ultralife announced the acquisition after the close of regular trading Wednesday. The company’s stock fell 15 cents, or 2.4 percent, to $6.01 in Thursday’s trading. Ultralife’s share price has nearly doubled in the last year, though it has declined about 20 percent in the last couple months.

Headquartered in Newark, New York, Ultralife’s business segments include battery & energy products and communications systems. The company has operations in North America, Europe, and Asia.

Contact Rombel at arombel@cnybj.com