Ideanomics Inc (NASDAQ:IDEX) has agreed to acquire VIA Motors International, Inc. for a 100% ownership stake in an all-stock transaction valuing VIA at $450 million. VIA shareholders are eligible for potential earnout consideration of up to $180 million.
Orem, Utah-based VIA Motors will manufacture commercial electric vehicles, including Class 2 through Class 5 cargo vans, trucks, and buses. VIA Motors is also working with an autonomous technology company to provide electrification of autonomous trucks for short-haul and mid-mile delivery.
VIA's intellectual property portfolio extends to proprietary software and control systems featuring embedded diagnostics and telematics to significantly improve fleet operating costs, uptime, and routing for superior life cycle economics.
VIA shareholders will receive ~162 million shares of Ideanomics common stock based on the 30-day VWAP of Ideanomics' common stock of $2.34 as of August 27, 2021, and are expected to own ~25% of the combined company.
Reports say Ideanomics is separately advancing $50 million of financing to VIA in a secured convertible note issued by VIA to fund its growth.
The company held cash and cash equivalents of $395.64 million as of the end of June. VIA will operate as a distinct business unit reporting to Alf Poor, Ideanomics CEO, and the Ideanomics Board.
IDEX shares are trading higher by nine cents, or 7.4% at $2.46 early Monday.
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