Tesla agrees to buy ultracapacitor maker Maxwell Technologies

Tesla has agreed to snap up battery maker Maxwell Technologies, giving the electric car maker access to exciting ultra-capacitors technology that allows for fast charging and release of energy.

Tesla agreed an all stock exchange offer valuing each share of Maxwell common stock at $4.75 per share, with the battery maker becoming a wholly owned subsidiary of Tesla

The deal is expected to be closed in the second quarter of the year.

Maxwell makes ultracapacitors, which are touted as a safer and more reliable than current battery technology, and has pioneered dry electrode technology, which can be used to create ultracapacitors that store large amounts of electrical charge without losing energy.

"We are very excited with today's announcement that Tesla has agreed to acquire Maxwell. Tesla is a well-respected and world-class innovator that shares a common goal of building a more sustainable future," said Franz Fink, president and CEO of Maxwell.

"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."

Tesla shares fell 2% on Monday to $306.78, while Maxwell stock climbed around 50% to $4.59.