Exro Technologies Inc. (TSX: EXRO) and SEA Electric Inc. have entered into a pivotal agreement for Exro’s acquisition of SEA, marking a significant advancement in the electric vehicle (EV) technology space. The transaction, valued at approximately US$300 million, is poised to enhance Exro’s technology offerings and accelerate its path to profitability.

This merger unites Exro’s and SEA’s complementary EV technology platforms, unlocking substantial growth opportunities and paving a path to profitability. The combined company, which will continue as Exro Technologies Inc. and trade on the Toronto Stock Exchange under the ticker “EXRO,” is expected to leverage its strengthened position to amplify growth and develop new partnerships while nurturing existing relationships.

Sue Ozdemir, CEO of Exro, expressed confidence in the merger, highlighting its potential to create significant revenue and cost synergies. “Our merger with SEA not only creates significant revenue and cost synergies, but positions Exro to amplify its growth with new partners while continuing to develop our existing relationships,” she commented.

The combined entity aims to modernize electrification with a patented technology platform. SEA Electric’s SEA-Drive propulsion technology, when integrated with Exro’s Coil Driver™, offers an end-to-end solution for commercial vehicles, enhancing performance and reducing total ownership costs. This technology has been validated by major OEMs like Mack (Volvo) and Hino (Toyota), with commitments to deliver over 1,000 propulsion systems in 2024.

Post-transaction, Sue Ozdemir will continue as CEO, Tony Fairweather will join as Chief Product Officer, and Darrell Bishop will become Chief Financial Officer. The board will comprise up to nine members, representing both Exro’s and SEA’s current boards.

The transaction values SEA at US$300 million. Exro will issue a combination of common shares and non-voting convertible preferred shares to SEA stockholders, totaling approximately US$248 million in consideration, based on a weighted average share price. Additionally, Exro will assume about US$46 million in SEA net debt.

The deal is anticipated to close by the end of Q1 2024, subject to approval by Exro shareholders and other customary closing conditions.

This acquisition represents a significant step in the consolidation of the e-mobility sector, positioning Exro Technologies Inc. at the forefront of the EV market. The merger with SEA Electric not only enhances Exro’s technological capabilities but also broadens its market reach, signaling a promising future in the rapidly evolving EV landscape.

  electric vehicles, Exro Technologies, SEA Electric, Sue Ozdemir, Tony Fairweather