Automotive technology

Automotive tech company ECARX to go public in $3.8 billion blank check deal

ECARX plans to announce partnerships with two new global automaker customers within the next six months, according to Shen. Car electrification will be an opportunity for ECARX and contribute about 15% of revenue this year, he said.

Jun Hong Heng, President of COVA Acquisition, said ECARX is well positioned for the next decade. The company could raise additional funds if there is additional interest, according to Heng.

Driverless cars

“It struck me that this is a very unique opportunity, with substantial product and revenue from ECARX, which is very rare for automotive technology companies,” he said. said in an interview.

The merger is expected to close in the fourth quarter, according to Thursday’s statement. UBS Group AG and Morgan Stanley advised ECARX on the transaction, while Cantor Fitzgerald acted as capital markets advisor to COVA Acquisition.

COVA Acquisition is led by Heng, founder of San Francisco-based Crescent Cove Advisors, which supports high-growth technology, media and telecommunications companies in the United States and Southeast Asia.

Crescent Cove was an early investor in Luminar, a driverless car startup founded by entrepreneur Austin Russell. Lamp went public through a SPAC deal in 2020.

Russell, CEO of Luminar, told Reuters the California-based startup would invest $15 million in ECARX in a bid to break into the Chinese auto market and tap into customers such as Geely.

“As things work out, I don’t think it would be surprising if we collaborated even more, invested even more, as this partnership evolves,” he told Reuters.

A blank check company, or special purpose acquisition company (SPAC), is a fictitious listed entity that uses the money raised from its IPO to merge with a private company, taking it public in the process. .

Chinese listings in the United States have been frozen for months as Beijing and US regulators have been locked in a dispute over the latter’s demand for full access to the books of Chinese companies listed in the United States.

Reuters and Bloomberg contributed to this report.