ECARX, an automotive technology company backed by Geely Chairman Eric Li, begins trading today on the Nasdaq as a publicly traded company in a reverse SPAC merger valued at $3.8 billion.
ECARX said in an investor presentation in November that the public offering would bring the estimated value, net of costs, to $368 million. An existing shareholder will retain his 89% stake in the combined company.
ECARX’s partner in a SPAC (Special Purpose Acquisition Company) is COVA Acquisition. COVA and his ECARX announced a merger in May, revealing he received a $45 million investment from China’s Geely Holding Group, lidar sensor maker Luminar Technologies and Geely-branded Lotus Technology. Did.
ECARX computer technology, including software and infotainment, is sold by Geely and Geely-affiliated brands such as Volvo, Polestar, Lynk & CO and Lotus in Europe, as well as China-based brands such as Zeekr and Geely, and the Smart joint venture. used. with Mercedes-Benz. A total of 12 brands use the company’s products.
Read more: How Geely quietly built an extensive European footprint
Founded in 2017, the company has about 2,000 employees and had revenue of $415 million in 2021, according to investor presentations.
Ahead of the listing, ECARX CEO Ziyu Shen said it was important for ECARX to grow internationally and attract customers beyond Geely and Geely-affiliated brands.
“The timing and listing in the US are very important to us,” said Shen. car news europe“We want to go into the international market, not just for fundraising, to tell the automotive industry that we are here. We are fully prepared.”