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China’s smart car tech firm ECARX announces biggest SPAC deal at $3.82B after Didi

Image credits: ECARX

Ecarx Holdings, an Hangzhou, China-based mobility tech company backed by billionaire Li Shufu, announced that it has entered into a $3.82B merger agreement with COVA Acquisition Corp to go public on Nasdaq, under the ticker symbol “ECX.”

The closing of the transaction is expected to occur in the fourth quarter of 2022, says the company. 

The deal with COVA Acquisition Corp includes a $45M investment from mobility tech company Geely Holding Group, Luminar Technologies, and automotive company Lotus Technology. It also includes a $300M cash raised by COVA Acquisition in its initial public offering (IPO) in February last year. 

The proceeds from the transaction will enable ECARX to accelerate its technology development and product roll-out, strategic acquisitions and investments, and international expansion.

Mobility tech company

Founded in 2017 by Ziyu Shen and Eric Li (Li Shufu), ECARX develops hardware and software solutions essential for the development of connected, automated, and electrified mobility.

Over the last three years, ECARX’s technology has been integrated into more than 3.2M cars worldwide.

The company’s core products include infotainment head units (IHU), digital cockpits, vehicle chip-set solutions, a core operating system, and an integrated software stack. Beyond this, ECARX is developing a full-stack automotive computing platform. 

Currently, the company employs over 2,000 team members, with facilities in China and Europe. 

Ziyu Shen, co-founder, Chairman, and CEO of ECARX says, “ECARX’s vertically integrated, full-stack automotive computing platform and underlying core technologies are designed to help meet this evolving demand head-on. COVA’s leadership team has an exceptional track record backing high growth ventures, and we look forward to unlocking partnerships and paths for collaboration to accelerate the development of next-generation technologies.”

Eric Li (Li Shufu), Co-founder and Largest Investor of ECARX says, “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.”

Blank check company 

COVA Acquisition Corp. is a blank check company whose business purpose is to effect a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganisation, or similar business combination with one or more businesses or entities.

Jun Hong Heng, Chairman of the Board and CEO of COVA says, “Guided by the ambitions of co-founders Ziyu Shen and Eric Li (Li Shufu), ECARX is building on its strong foundation to forge new runways for growth both within China and internationally as it continues to scale. ECARX fits squarely into our approach and investment philosophy, which focuses on industries being disrupted by advances in technology and artificial intelligence. Together, we will create revolutionary solutions to shape the future of mobility.”

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