- Exro Technologies announced that it has completed its merger with SEA Electric to create a new e-mobility technology company
- The combined company intends to accelerate and modernize electrification with a patented, blue chip validated technology platform
- The transaction values SEA Electric at approximately C$402 million
- Exro Technologies stock opened trading at C$1.05 per share
Exro Technologies (TSX:EXRO) announced that it has completed its merger with SEA Electric to create a new e-mobility technology company.
The Calgary-based firm signed an agreement to acquire SEA by Exro in a business combination expected to strengthen its technology offerings while accelerating revenue growth.
The combined company intends to accelerate and modernize electrification with a patented, blue-chip validated technology platform.
SEA Electric produces the SEA-Drive propulsion technology that controls all the components that electrify a vehicle. When integrated with Exro’s Coil Driver, the technologies can provide an end-to-end solution with enhanced performance and improved total cost. SEA’s technology has been validated by large blue-chip original equipment manufacturers customers with multi-year commitments from Volvo to Toyota. Together, Exro and SEA target delivery of more than 1,000 propulsion technology systems to these manufacturers in 2024.
The transaction values SEA Electric at approximately C$402 million. Exro will issue C$1.03 per share.
“Our merger with SEA not only creates significant revenue and cost synergies, but positions Exro to amplify its growth with new partners while continuing to develop our existing relationships. Having come to know SEA and its management team from doing business with them over the past several years, I have great confidence that this acquisition will bolster our competitive positioning in the EV technology space while providing significant value potential for our shareholders,” Sue Ozdemir, Exro Technologies’ CEO, said in a statement.
Once the transaction is complete, the combined company will continue to operate under the name Exro Technologies Inc. and trade under the same TSX ticker symbol.
The company also announced concurrent equity and debt financings for gross proceeds of C$42 million. This financing was composed of an equity financing via issuing subscription receipts of Exro and a debt financing through arrangements by SEA from a Canadian pension fund manager.
Exro Technologies is a clean technology company offering advanced power control electronics that optimize and expand the capabilities of electric motors and batteries.
Exro Technologies stock opened with a near 10 per cent loss, trading at C$1.05 per share. The stock has lost more than 60 per cent year-over-year but has grown more than 244 per cent since 2019.
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