Ideanomics, a FinTech company, plans to buy electric commercial vehicle firm VIA Motors in an all-stock deal valuing the company at approximately $630 million, Reuters reported.
The acquisition comes at a time when electric vehicles (EVs) are in vogue. Many automakers have been striving to make them since China, Europe and others mandated lower carbon emissions, according to the report.
In the transaction, VIA Motors CEO Bob Purcell will be retaining his role as leader of the company, the report stated. VIA Motors will also continue operating as a distinct company.
The company is also eligible for a potential earnout consideration for up to $180 million, which the would be paid for out of Ideanomics’ stock, according to the report.
Ideanomics is based in New York. The company’s Mobile Energy Global unit helps commercial fleet operators buy EVs, the report stated.
EVs have become a popular startup focus, with many of the new companies taking advantage of a vibrant market for capital in the last year either through initial public offerings (IPOs) or mergers with special purpose acquisition companies (SPACs), according to the report. The latest was Rivian, which is backed by Amazon and filed to go public last week.
In related news, the purchase of software platform ViriCiti by ChargePoint Holdings could enable more access to EV charging stations.
The acquisition will see ViriCiti bolstering the ChargePoint fleet by adding more information sources to improve operations. There will be new features, including charging station monitoring, vehicle maintenance and vehicle operations data. The combined platform will also help fleets figure out what routes offer EV charging stations.
In addition to the glut of new startups and shifts toward EVs, President Joe Biden introduced an executive order mandating that EVs make up half of all new vehicle sales by 2030.