Ideanomics to Acquire VIA Motors in $450M Deal

Ideanomics Acquires Via Motors in $450 Million Deal

Ideanomics, a New York-based firm specializing in fintech and electric mobility, has expanded its portfolio through the acquisition of commercial electric vehicle manufacturer Via Motors. The deal, executed entirely in stock, is valued at $450 million.

Throughout this year, Ideanomics has been actively pursuing acquisitions within the mobility sector. This strategic approach aims to establish a vertically integrated suite of services for fleet operators and public transit agencies transitioning to electric vehicles. Following the announcement of the Via Motors acquisition, Ideanomics’ stock price experienced a 6% increase, reaching $2.43 upon market opening.

Recent Acquisitions by Ideanomics

Ideanomics’ acquisition efforts this year have been substantial. The company has successfully completed the purchase of several key businesses, including:

• US Hybrid: A manufacturer of electric powertrain components and fuel cell engines.
• Solectrac: An EV tractor manufacturer, notable for producing the sole American-made electric tractor.
• Wave: A Utah-based company focused on wireless charging technology.
• Timios Holdings Corp.: A provider of title and escrow services.

The integration of Via Motors represents the most significant acquisition in Ideanomics’ history to date.

Via Motors specializes in the design and manufacture of electric vans and trucks intended for short- and medium-range delivery applications. Their vehicle models utilize a modular, “skateboard” platform architecture.

According to CEO Alfred Poor, speaking during an investor call on Monday, this acquisition signifies a “transformational milestone” for Ideanomics. He further emphasized that it provides the company with “full OEM manufacturing capabilities,” enabling them to produce the electric vehicles they finance and support with charging solutions.

The agreement includes a potential earnout provision for Via Motors stockholders, amounting to up to $180 million. This is contingent upon successful vehicle deliveries through 2026. Via Motors shareholders will also retain approximately 25% ownership in the combined entity.

In a separate announcement, Ideanomics stated its intention to provide a $50 million financing note to support Via Motors’ ongoing operations.

Ideanomics’ Integrated Services

Currently, Ideanomics offers a comprehensive range of services, encompassing EV procurement and the establishment of charging infrastructure. Through its fintech division, the company extends financing options, alongside charging-as-a-service and vehicle-as-a-service models.

These service offerings are designed to facilitate a shift for fleet companies, moving away from capital expenditure-based investments towards operating expense-driven models.

Poor articulated in a recent second-quarter earnings call that the transition from CapEx to OpEx is expected to significantly impact fleet operators. He believes it will accelerate the adoption of zero-emission fleets by eliminating the substantial upfront investment typically required for new vehicles and infrastructure.

While specific financial projections for Via Motors through 2026 were not disclosed, Poor indicated that these details will be included in Ideanomics’ proxy statement, which will be submitted to regulatory bodies prior to the acquisition’s completion.