Ideanomics, Inc (IDEX) stock was popping high in the Pre-market following the announcement of its acquisition agreement with VIA Motors International, Inc. IDEX stock price saw a push of 10.04% to reach $2.52 a share at the time of this writing. The stock was also green in the previous trade and went high by 1.78% at closing. Let’s dig in to explore more of it.
What’s Happening?
Ideanomics, Inc is a New York-based stock that focuses on a convergence of financial services and industries experiencing technological disruption. IDEX stock today announced that it has signed an acquisition agreement with VIA Motors International, Inc. According to the agreement, IDEX stock will acquire 100 percent ownership of VIA Motors in an all-stock transaction.
According to the agreement, the base transaction values VIA Motors at $450 million. A potential earnout of $180 million applies to VIA shareholders upon pre-established vehicle delivery volume thresholds through 2026. Shareholders of VIA Motors will get 162 million shares of IDEX stock and own about 25% of the combined entity. Apart from this, IDEX stock is issuing $50 million of secured convertible notes to VIA motors in order to finance its growth. The transaction requires regulatory as well as IDEX shareholder’s approval along with other customary closing conditions. The transaction will close after IDEX’s shareholders’ meeting.
Previous News of IDEX stock:
IDEX stock’s wireless EV charging subsidiary WAVE, named Aaron Gillmore as CEO effective immediately on August 26, 2021. WAVE is optimistic to scale its business and accelerate its growth under the leadership of Gillmore. Michael Masquelier is now serving WAVE as the Chief Technical Officer and leading the engineering and technology development operations. Gillmore has 25 years of experience in EV and clean technology.
Financial View of IDEX stock:
In the second quarter ended June 30, 2021, IDEX stock generated $33.2 million and reported $9.3 million of gross profit. The gross margin for the recently reported quarter was 28%. By the end of the second quarter, Ideanomics stock had cash and short-term investments of $411 million.
Wrap Up:
Investors are happy with the announcement of the recent acquisition agreement by the Ideanomics stock with VIA Motors. The management is striving hard to execute its long-term growth strategy and this agreement is a part of it. Ideanomics recently announced financial results reflect positive operational as well as financial growth. In a nutshell, this stock can be a good bet for long-term investors.
