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Ideanomics (IDEX) Shares Rally Premarket On News Of VIA Motors Acquisition

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Updated: 30 Aug 2021

Shares of fintech firm Ideanomics (NASDAQ: IDEX) are up over 11% premarket after announcing that it has agreed on a deal to acquire the entire share capital of VIA Motors International.

The deal, which is an all-stock transaction, values VIA at $450 million. VIA shareholders will receive approximately 162 million shares of Ideanomics stock, meaning they will own around 25% of the combined company.

Ideanomics is separately advancing $50 million of financing to VIA in a secured convertible note issued by VIA to fund its growth. In addition, VIA shareholders are eligible for potential earnout consideration of up to $180 million. The earnout is contingent upon pre-established vehicle delivery volume thresholds through 2026.

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VIA Motors, headquartered in Orem, Utah, will manufacture commercial electric vehicles, including cargo vans, trucks, and buses.

“This acquisition is aligned with our long-term strategy and provides us an immediate leadership position in a rapidly growing market and yet another path to accelerate EV adoption and Ideanomics' market share. said Ideanomics Chief Executive Officer Alf Poor. “It also provides Ideanomics a full OEM manufacturing capability which are synergistic to our other operating businesses.”

Ideanomics' share price is trading at $2.55 premarket, up 11.35%.

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