ECARX reached an agreement with COVA Acquisition Corp, and the company will list on Nasdaq by way of special purpose acquisition company (SPAC).
ECARX (Chinese: 亿咖通科技), a tech company that develops hardware and software solutions including infotainment head units, digital cockpits, vehicle chip-set solutions, a core operating system and integrated software stack, is expected to be listed on Nasdaq through SPAC in Q4 2022.
After COVA, a blank check company, completes the acquisition of ECARX, ECARX will be valued at USD 3.82 billion according to market expectations.
Moreover, the company will use the funds raised from the transaction to roll out its new product, expand international market and undertake strategic acquisition and investments.
ECARX closed three financing rounds and the proceeds totaled around USD 650 million. Its major investors include Geely Group, Baidu, Susquehanna International Group and China’s State-Owned Capital Venture Fund.
To date, the company’s products are installed on more than 3.2 million vehicles, and its revenue reached USD 436 million in 2021. Meanwhile, the company partners with Geely, Volvo, Mercedes-Benz and Lotus. Most notably, Li Shufu, the founder and chairman of Geely, is also the co-founder and largest investor of ECARX.