Maxwell Signs Equity Investment Agreement with China's SDIC Fund Management

The investment in Maxwell will enable the company to sufficiently invest in strategic technology development as well as expand its presence in the Asian market.

Maxwell Technologies Inc., a leading developer and manufacturer of capacitive energy storage and power delivery solutions, announces the signing of a stock purchase agreement with SDIC Fund Management Co., Ltd. SDIC Fund Management has significant investments in China's energy storage industry, including top battery companies, major system integrators in the new energy market, as well as leading OEMs in the China auto and grid industries. Following the closing of the transaction, SDIC Fund Management's ownership stake in Maxwell's common stock is anticipated to represent approximately 19.9% of Maxwell's total issued and outstanding shares of common stock on a pre-issuance basis. The purchase price is $6.32 per share, which represents a 16% premium over today's closing price, and will bring approximately $46.6 million in cash to Maxwell before transaction costs.

The closing of the transaction is subject to usual and customary conditions and is subject to approval by the Committee on Foreign Investment in the United States (CFIUS) and, if required, relevant Chinese governmental authorities. The transaction is expected to close in the third quarter of 2017. As part of the agreement, the parties have agreed that SDIC Fund Management will be subject to an 18-month lock-up period following the closing of the transaction and will have the right to appoint a representative to Maxwell's Board of Directors. Such appointment is subject to the closing of the transaction and is intended to be no later than one business day following Maxwell's 2017 Annual Meeting of Shareholders.

"This strategic investment by SDIC Fund Management greatly strengthens our position in multiple areas," says Dr. Franz Fink, Maxwell's President and Chief Executive Officer. "SDIC Fund Management's investment allows us to sufficiently invest in strategic technology development as well as expand our collaboration in Asia, targeting China as one of the largest and fastest growing energy storage markets. Their expertise and resources in the new energy market in China will assist us in accelerating several of our strategic initiatives to make us a much stronger global competitor. The funding will also help foster significant partnerships with industry leaders in automotive and energy storage and positions us to capitalize on the unprecedented upside dry electrode opportunity. This is a great win for our shareholders, partners, customers, and employees."

"We are delighted to partner with Maxwell Technologies," says Gao Guohua, Chairman of SDIC Fund Management. "We conducted comprehensive diligence, concluding that Maxwell has a world-class team with the vision and sound strategy needed to leverage their innovative dry electrode technology. We believe this technology has the potential to transform energy storage, addressing a substantial market opportunity, especially in China. We are excited about Maxwell's future growth prospects and the value that each party brings to this new alliance."