Electric commercial vehicle maker VIA Motors is being acquired by Ideanomics in a deal that values the company at $450 million.
Under the terms, Ideanomics (NASDAQ: IDEX) will purchase Orem, Utah-based VIA in an all-stock transaction, with VIA stockholders receiving 162 million shares of Ideanomics common stock at a $2.34-per-share valuation as of Aug. 27, 2021. An additional $180 million in an “earnout” could be paid to VIA shareholders in Ideanomics stock if VIA meets certain vehicle delivery targets by 2026.
VIA shareholders will own approximately 25% of the company, which will operate as a business unit of Ideanomics reporting to Alf Poor, Ideanomics CEO. Ideanomics is also advancing VIA $50 million in financing in the form of a convertible note to fund its growth.
“VIA Motors is changing last- and mid-mile delivery with innovative electric commercial vehicles that fleets can afford,” said Bob Purcell, CEO of VIA Motors, in a statement. “Combining VIA with Ideanomics facilitates significant synergies, while Ideanomics’ financial and personnel resources provide the backing we need to pursue an array of exciting growth prospects we have identified. All of us at VIA Motors are delighted to join the team to usher in the new era of electric commercial vehicles and further the long-term growth strategy at Ideanomics.”
Ideanomics is a global company that focuses on the convergence of financial services and industries experiencing technological disruption. It has a mobility division that offers commercial fleets the opportunity to both secure vehicles and secure financing and leasing arrangements, and energy management solutions.
Ideanomics has built its business around electrification and owns and operates Solectrac (electric tractors), Energica (electric motorcycles), Treeletrik (electric mopeds), WAVE (wireless charging), US Hybrid (power conversion systems for electric, hybrid, and fuel cell commercial buses and trucks), Medici Motor Works, MEG, and Silk EV. The company has made more than $1 billion in acquisitions since 2020.
VIA produces a skateboard electric chassis that is transformed into Class 2-5 cargo vans, trucks and buses. The company is working with Gatik, a middle-mile autonomous vehicle developer that counts Walmart (NYSE: WMT) and Loblaw Cos. (TSX: L.TO) among its customers, on an electric autonomous vehicle.
“This acquisition is aligned with our long-term strategy and provides us an immediate leadership position in a rapidly growing market and yet another path to accelerate EV adoption and Ideanomics’ market share,” Poor said. “It also provides Ideanomics a full OEM manufacturing capability which is synergistic to our other operating businesses.”