Ideanomics, a FinTech company, said on August 30, 2021, that it would acquire VIA Motors International Inc in an all-stock deal that would value the electric commercial vehicle firm at about $630 million.
The acquisition comes as several automakers are striving to garner their hold on the EV market segment since China, Europe, and others mandated lower carbon emissions, said the report. Globally electric vehicles (EVs) are in vogue, with many regional mobility startups getting into the business.
Ideanomics will offer 162 million shares to shareholders of VIA Motors International, and the latter is expected to own about 25 percent of the combined entity, the companies said in a joint statement.
VIA Motors CEO Bob Purcell will be retaining his role as leader of the company, and it will also continue operating as a different company. New York-based Ideanomics’ Mobile Energy Global unit helps commercial fleet operators buy EVs, the report stated.
Electric vehicles see a strong revival in demand in June as Covid curbs ease, with many of the new companies taking advantage of a vibrant market for capital in the last year either through initial public offerings (IPOs) or mergers with special purpose acquisition companies (SPACs), according to the report. The latest was Rivian, which is backed by Amazon and filed to go public.
“Ideanomics is separately issuing $50 million of the secured convertible note to VIA Motors to fund its growth, and that will be subject to purchase price adjustment,” they said. According to the statement, Utah-based VIA Motors is eligible for potential earnout consideration of up to $180 million that would be paid in Ideanomics’ stock.