Historically, the Dog Days of Summer mark the time when nothing of any note happens in business. But this year, the Silicon Slopes business community has blown that cliché out of the water.
Case in point, Orem, Utah-based VIA Motors International has announced it is being acquired by New York City-based Ideanomics (NasdaqCM:IDEX) in a multipart transaction that may eventually reach $630 million.
Founded in 2010, VIA is a very intriguing electric vehicle company that has developed what it describes as its "skateboard platform" for developing commercial EVs in partnership with transportation firms and automotive companies.
Designed initially for Class 2, 3, 4, and 5 trucks, VIA's claims that its customizable skateboard and software will allow it to create EVs to meet the specific transportation needs of virtually any commercial fleet.
The transaction details are outlined in this press release, but in summary
- Ideanomics is acquiring VIA in an all-stock transaction for $450 million. Additionally,
- Ideanomics is also advancing VIA $50 million of financing via a secured convertible note to help it fund growth. Last of all,
- VIA shareholders may also receive up to $180 million in additional "earnout consideration ... contingent upon pre-established vehicle delivery volume thresholds through 2026," with said earnout payable in Ideanomics stock.
As is often the case, the acquisition is subject to "customary closing conditions, including Ideanomics' shareholder approval."
According to Bob Purcell, CEO of VIA Motors, "VIA is changing last and mid-mile delivery with innovative electric commercial vehicles that fleets can afford. 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."
Conversely, Shane McMahon, the executive chairman of Ideanomics, describes the VIA acquistition as a "... transformative deal for Ideanomics. 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."
Post-acquistion, VIA shareholders are expected to own roughly 25% of Ideanomics (not counting any earnout payments in Ideanomics stock).
Cool stuff. And definitely not your typical Dog Days of Summer news announcement.