Maxwell Technologies Inc, a developer, and manufacturer of batteries reported to have agreed to be bought by Tesla Inc for $218 million.

The deal values each share of Maxwell Technologies Inc at $4.75 corresponding to 55 per cent premium to the closing price on Friday. With 45.0 shares outstanding, the proposed price values the battery-maker at approximately $218 million. The deal is expected to be completed in the second quarter of 2019.

Maxwell Technologies Inc produced ultracapacitors used to prolong automobile batteries life and for electric energy storage on power grids.

Tesla believes that these technologies can help overcome battery chemistry and technology obstacles they face as electric car makers.