As a financial technology (fintech) company, Ideanomics is focused on “driving the sustainability transformation.” Through its segment Ideanomics Mobility, the company aims to help bring electrification to commercial vehicle fleets. It also operates Ideanomics Capital, which uses technology and innovation to improve the efficiency of the financial services industry.
VIA Motors and Ideanomics deal
Since many nations have adopted stricter carbon emissions guidelines, many automakers are striving to build up their electric vehicle capabilities. Another electric vehicle manufacturer, Rivian, filed confidentially to go public last week.
The base transaction price is $450 million, according to Ideanomics, with a potential for $180 million in earnout for VIA tied to future vehicle deliveries.
In the all-stock transaction, Ideanomics will acquire VIA Motors and 162 million shares of IDEX will be offered to VIA Motors shareholders. This will give them about a 25 percent stake in the combined company.
Also, Ideanomics is issuing a separate $50 million in a secured convertible note to VIA to help fund the electric vehicle company's growth. That will be subject to purchase price adjustment.
According to Reuters, after the acquisition is completed, VIA Motors CEO Bob Purcell is expected to remain in that role. VIA will continue operations as a separate business entity, which will report to Ideanomics CEO Alf Poor.
Ideanomics’ executive chair Shane McMahon stated in a press release, “As we continue to grow into a leader in the commercial EV space VIA Motors adds valuable brand cachet and an exceptional manufacturing discipline to our portfolio.”
Is VIA Motors publicly traded?
VIA Motors isn't a publicly traded company at this time. It started by converting GM vehicles to be plug-in hybrid vehicles (PHEV). Now, it produces its own fully electric commercial vehicles for fleet managers.
Ideanomics is a public company that trades on the Nasdaq Capital Markets under the ticker symbol "IDEX." In June of 2021, Ideanomics also completed the acquisition of US Hybrid, which manufactures and distributes electric powertrain components and fuel cell engines for medium and heavy-duty commercial fleet applications.
Ideanomics is headquartered in New York City and operates globally in the U.S., China, Ukraine, Malaysia, and the U.K.
VIA Motors documentary appearance
Early in 2021, VIA Motors was featured as part of a public television mini-documentary. In the series entitled “In Depth,” CEO Purcell and CTO Thierry Caussat discussed the role of commercial electric vehicles in the future of the fleet industry.
“If you look at the total population of commercial vehicles, they’re going to represent 6 million tons of additional noxious emissions over the next 10 years,” said Purcell. Purcell and Caussat contend in the documentary that it isn't too expensive for companies to invest in electric commercial fleets.
Purcell claimed, “Today we can deliver an electric drive truck at the same costs as a diesel truck.”