Ultralife Completes Acquisition of Southwest Electronic Energy
Ultralife Corporation has acquired advanced battery solutions provider Southwest Electronic Energy (SWE) in a deal worth $25 million. The acquisition enhances Ultralife Corporation's extensive portfolio of battery and charger technologies and expands the company's technical expertise into new industry segments.
Based in Missouri City, Texas, SWE is an independent smart battery power system designer and manufacturer. The company has more than 50 years of experience in industries ranging from oil and gas, military electronics, remote field applications and subsea.
The acquisition of SWE brings this industry expertise to Ultralife Corporation, allowing the two companies to combine their technical knowledge to improve the support available to original equipment manufacturers (OEMs) in the oil & gas, offshore, and oceanographical sectors. Ultralife has previously established itself in the defense, medical, robotics and security sectors with its long-lasting, rugged and reliable batteries.
"SWE shares many of Ultralife's values including engineering excellence and a high standard of quality for both product and service," explained Mike Manna, VP of Global Sales and Strategic Alliances at Ultralife Corporation. "This made it a perfect cultural and strategic fit for us, as both companies can complement each other with our respective capabilities.
"In the past year, we have diversified into a number of new specialist areas, enhancing our portable power products for smart home and internet of things devices. With the acquisition of SWE, we can continue this expansion into oil and gas and new marine applications.
"SWE's expertise in delivering sophisticated battery solutions for challenging applications like measurement while drilling (MWD), autonomous underwater vehicles (AUVs), manned underwater vehicles (MUVs) and marine buoys will significantly support us in expanding further. SWE's team will also gain access to the global engineering knowledge and support of our battery experts, allowing even more innovation in battery technology," Manna concluded.
The fit between the two companies is a sentiment echoed by Michael Popielec, President and CEO of Ultralife Corporation, who stated that "this acquisition advances our strategy of commercial revenue diversification and enhances the operating leverage of our business model. SWE checks nearly every box in our profile of an ideal acquisition candidate: a complementary line of highly engineered, mission critical, differentiated products; a blue-chip customer base; an innovative culture similar to our own; an experienced technical engineering and new product development team; a very strong management team; and a business model aligned with our core business."
The deal marks Ultralife Corporation's second major acquisition in recent years, following the acquisition of UK-based battery manufacturer Accutronics in 2016, which has already proven successful for both businesses.