Global mobility tech company ECARX Holdings today announced a merger agreement with COVA Acquisition at a $3.82 billion pro forma equity value, or pre-money equity value of $3.4 billion.
If approved, ECARX expects to list on the Nasdaq under ticker symbol ECX. The closing is expected in the fourth quarter.
Terms call for $300 million cash held in trust by COVA as well as $45 million in additional capital from strategic partners, Geely Holding Group and Luminar, and convertible note holder Lotus Technology. After the closing, ECARX’s existing shareholders are expected to own approximately 89% of the pro forma combined company, assuming no redemptions by COVA’s shareholders. COVA’s sponsor and controlling shareholders of ECARX have agreed to a 6-month lock-up.
China-based ECARX develops hardware and software solutions for connected, automated and electrified mobility, which it supplies to the global automotive industry as it transforms to meet evolving consumer demands. Over the last three years, ECARX’s technology has been integrated into more than 3.2 million cars worldwide, according to a news release. Read more.
