Merger COVAU

ECARX to Go Public in $3.82 Billion Merger with COVA Acquisition Corp.

, SPAC Research

ECARX, a global mobility tech company, has entered into a merger agreement with COVA Acquisition Corp ("COVA").

The transaction values ECARX at $3.82 billion pro forma equity value, or pre-money equity value of $3.4 billion.

The transaction assumes $300 million cash held in trust by COVA and includes $45 million in additional capital from strategic partners, Geely Holding Group and Luminar, and convertible note holder Lotus Technology.

The proceeds from the transaction will enable ECARX to accelerate its technology development and product roll-out, strategic acquisitions and investments, and international expansion.

ECARX generated $436 million in revenue in 2021.

COVA sponsor and controlling shareholders of ECARX have agreed to a 6-month lock-up.

UBS and Morgan Stanley acted as joint financial advisors to ECARX. Skadden, Arps, Slate, Meagher & Flom acted as international legal counsel to ECARX. Cantor acted as capital markets advisor to COVA. Orrick, Herrington & Sutcliffe acted as its legal counsel.

Upon completion, the combined company expects to be listed on the NASDAQ under ticker symbol "ECX".

The closing of the transaction is expected to occur in the fourth quarter of 2022.

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