ECARX Holdings, Inc., a global mobility tech company, has entered into a merger agreement with COVA Acquisition Corp. and expects to be listed on the Nasdaq upon completion of the transaction. The closing of the merger is expected to occur in the fourth quarter of 2022.
The transaction represents a combined company pro formal equity value of approximately $3.82 billion. It includes $300 million in cash held in trust by COVA Acquisition Corp., as well as $45 million in additional capital from strategic partners Geely Holding Group and Luminar, and convertible note holder Lotus Technology.
ECARX was co-founded in 2017 by Shen Ziyu, Chairman and CEO, and by Eric Li, the company’s largest investor. Li is also the founder and chairman of Zhejiang Geely Holding Group Co., Ltd., one of the largest automotive groups in the world. Since its inception, ECARX has benefited from a connection and privileged access to Geely and has growth potential within the Geely ecosystem, which comprises Geely Automobile Holdings Limited, including the Geely, Geometry, Lynk & Co, and Zeekr brands.
ECARX develops software and hardware such as digital cockpit and infotainment systems to serve internal combustion engine vehicles and electric and autonomous driving vehicles. Over the past three years, more than 3.2 million vehicles around the world have applied the technical solutions of ECARX.
Currently, the company is developing an automotive central computing platform, an operating system and software to deliver the digital cockpit, advanced driver-assistance systems (ADAS) and unsupervised driving (AD) and functional safety solutions.
COVA Acquisition raised $300 million in its 2021 IPO, according to a filing with the US Securities and Exchange Commission (SEC), with the aim of finding acquisition targets in the tech sector in Southeast Asia or the US. COVA Acquisition is led by Jun Hong Heng, founder of Crescent Cove Advisors in San Francisco, and Crescent Cove Advisors is also an early investor in Luminar, supporting high-growth technology, media and telecommunications enterprises in the US and Southeast Asia. Recently, ECARX signed a cooperation agreement with Luminar to further promote the development of ADAS and AD technologies.