Financial technology company Ideanomics Inc said on Monday that it will acquire VIA Motors International Inc in an all-stock deal that would value the electric commercial vehicle firm at about $630 million.

The acquisition comes as several automakers are competing to develop electric vehicles after China, Europe and other countries and regions mandated lower carbon emissions.

Ideanomics will offer 162 million shares to shareholders of VIA Motors International, and the latter is expected to own about 25 per cent of the combined entity, the companies said in a joint statement.

“Ideanomics is separately issuing $50 million of secured convertible note to VIA Motors to fund its growth, and that will be subject to purchase price adjustment,” they said.

Will we be EV-ready by 2030?

Utah-based VIA Motors is eligible for potential earnout consideration of up to $180 million that would be paid in Ideanomics’ stock, according to the statement.

Tapping capital market boom

VIA Motors Chief Executive Officer Bob Purcell will maintain his leadership role and the company would operate as a distinct business unit reporting to Ideanomics’ Chief Executive Alf Poor.

Electric vehicles see strong revival in demand in June as Covid curbs ease

New York City-based Ideanomics operates as a fintech company and its Mobile Energy Global unit helps commercial fleet operators procure electric vehicles.

A slew of fast-growing EV start-ups have taken advantage of the boom in capital markets in the past 12 months, either through initial public offerings or via a merger with special purpose acquisition companies, with the latest being Amazon.com Inc-backed Rivian filing to go public last week.

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