The energy storage sector is growing concerning need and demand, something Maxwell Technologies Inc. (NASDAQ:MXWL) understands all too well. Notably, most device manufacturers are going for less size and high capacity to increase the functionality of their devices. Interestingly, capacitors go into all electronic devices in the world. As such, demand for the energy storage solutions will only go up.
The HV line made up only 21% of total revenue
Interestingly, Maxwell Technologies divested the High Voltage (HV) product line late last year to concentrate on the low voltage market segment. Notably, the firm sold all its shares to an affiliate of Renaissance Investment Foundation. In particular, this implies that the firm gave away the two subsidiaries based in Switzerland that specialized in HV capacitors.
According to the official statement from the company, the two subsidiaries, Maxwell Technologies SA and CONDIS®, sold for $55.1 million all in cash. Further, Renaissance will pay Maxwell up to $15 million in potential future payments. Interestingly, the HV product line made up only about 21% of Maxwell’s revenue score in Q3 2018. Therefore, the divestiture would give the firm ample time to concentrate on the business segment that generates much of the revenue.
Users will optimize production efficiency with the new product line
Commenting on the divestiture, Maxwell’s CEO, Dr. Franz Fink said, “This action was taken to put the necessary resources in place so Maxwell can better focus on and pursue the tremendous growth opportunities presented by the markets of auto, wind, rail, and grid served by our Ultracapacitor technology.”
Interestingly, the results of the resource re-focusing are coming out in public. Just last week, the firm launched improved and next-generation energy storage platform that is much more reliable. Notably, the 3.0V product platform is applicable for both single cell and complex systems that are multi-cell. In particular, the new platform enables creation of ultracapacitors that have a higher energy quotient.
The cell is usable in the same form factor as the cells with 2.7 V capacity. Therefore, it is clear that the 3.0 V product line will enable manufacturers to use fewer cells. As such, users should expect to optimize the efficiency of their products and at a very low cost.