NEWARK, N.Y., 10 Oct. 2007. Ultralife Batteries Inc. has agreed with the sellers of McDowell Research to reduce the purchase price relating to Ultralife's acquisition of McDowell Research in July 2006. The negotiated reduction of $7.9 million reduces the total purchase price from approximately $28.4 million to $20.5 million.
Under the May 1, 2006 acquisition agreement, Ultralife acquired McDowell Research for a purchase price of approximately $25 million consisting of $5 million in cash and a $20 million convertible note held by the sellers, plus an additional $3.4 million for a purchase price adjustment based on the value of certain assets acquired as of the closing.
In the first quarter of 2007, Ultralife paid $1.5 million of the outstanding purchase price adjustment with $1.9 million remaining as an accrued liability.