Ideanomics to increase its ownership stake in Energica to 70%
- Ideanomics to increase its ownership stake in Energica from 20% to 70%.
- The deal will help Ideanomics expand its global footprint in the EV industry.
- The agreement is subject to customary closing conditions, including regulatory approval.
Ideanomics Inc (NASDAQ: IDEX) has entered into an agreement to launch a voluntary conditional tender offer in concert with the Founders of Energica for shares of Energica Motor Company, the U.S. firm said in a press release on Wednesday.
Upon meeting customary closing conditions, including regulatory approval, Ideanomics will own roughly 70% of the Italian manufacturer of high-performance electric motorcycles. Energica Founders will continue to own the remaining 29% of the company.
Ideanomics’ currently owns 20% of Energica
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The announcement marks a sharp increase in Ideanomics’ ownership stake in Energica that currently stands at 20%.
Increasing its investment in the Italian firm will help Ideanomics expand its global footprint in the EV industry, particularly in the high-performance electric motorcycles market, which is estimated to note a compound annual growth rate of more than 35% from 2019 to 2024.
“With exceptional management and a full range of innovative zero-emissions products already in market, we believe Energica can benefit strongly from Ideanomics Capital’s resources, transforming their growth trajectory and positioning them as a global leader in the electric motorcycle market,” Ideanomics CEO Alf Poor said in a statement.
Legal advisors for both companies
Ideanomics picked Venable LLP and Greco Vitali e Associati as its legal advisors. Nctm served the role for Energica.
The Italian firm saw a close to 100% growth in sales last year, followed by its “largest order to date” in H1 of 2021, helping quick expansion not just in Europe but also in AMEA (Asia, the Middle East and Africa).
“Ideanomics provides access to a synergistic network of innovative companies addressing global challenges within the zero-emission transportation segment. We look forward to continued growth, innovation and collaboration within the Ideanomics ecosystem,” Energica CEO Livia Cevolini said in a statement.