ECARX Holdings, Inc., a Chinese mobility tech company, has entered into a merger agreement with COVA Acquisition Corp. and upon completion of the transaction expects to be listed on Nasdaq under ticker symbol “ECX”. The closing of the transaction is expected to occur in the fourth quarter of 2022.
The transaction values ECARX at $3.82 billion. Proceeds from the transaction will enable ECARX to accelerate its technology development and product roll-out, strategic acquisitions and investments, and international expansion.
ECARX develops hardware and software solutions that are essential for the development of connected, automated and electrified mobility, which it supplies to the global automotive industry.
Over the last three years, the company’s technology has been integrated into more than 3.2 million cars worldwide.
ECARX was co-founded in 2017 by Ziyu Shen, Chairman and CEO, and by Eric Li (Li Shufu), the company’s largest investor.
Mr. Li is also the founder and chairman of the Zhejiang Geely Holding Group Co., Ltd., one of the largest automotive groups in the world.
ECARX has benefited from its access to Geely and its ecosystem, which comprises Geely, Geometry, Lynk & Co, and Zeekr brands, as well as Lotus, Proton, smart, Volvo Cars, and other OEMs that are affiliated with the company or in which it is a long-term shareholder.
Ziyu Shen, Co-founder, Chairman and CEO of ECARX, says: “The global auto industry is experiencing the fastest transformation in its history – the era of internal combustion engines and horsepower is over. We believe vehicle DNA will transform more in the next decade than it has in the past hundred years, and this shift will drive an extensive change in OEM vehicle development, calling for all-new platforms, advanced computing power and continuous over-the-air software updates. ECARX’s vertically integrated, full-stack automotive computing platform and underlying core technologies are designed to help meet this evolving demand head-on.”
Eric Li (Li Shufu), Co-founder and Largest Investor of ECARX, adds: “ECARX is a pureplay company focused on intelligent technology, and its success speaks volumes about the level of focus and execution that the team brings to its customers and partners. I’m especially excited that the company is taking steps to strengthen its European market presence, while accelerating its international expansion plans through its partnership with COVA.”
Luminar has also announced an investment in ECARX.
ECARX‘s current core products include infotainment head units (IHU), digital cockpits, vehicle chip-set solutions, a core operating system and integrated software stack.