(Reuters) – Start-up of electric vehicle technology REE Automotive has agreed to go public through a merger with a white check company, in a deal that values the Israeli company at about $ 3.60 billion, the companies said Wednesday.
The contract with 10X Capital Venture Acquisition Corp is expected to provide $ 500 million in cash to REE. The deal involves $ 300 million in private investment from investors including Mahindra and Mahindra, Koch Strategic Platforms and Magna International.
The company will be jointly listed on Nasdaq under the symbol “REE”.
Despite the emerging electric vehicle market, Microvast, Faraday Future and EVgo Services have some of the companies in the industry that have agreed to join vacant reviews so far this year.
U.S. President Joe Biden has promised to replace the federal fleet of about 650,000 vehicles with electric models while the new administration shifts its focus toward clean energy.
Co-founded by CEO Daniel Barel, REE Automotive manufactures products like REEBoard, which is a flat, modular platform that can support autonomous vehicles.
The company signed an agreement with Indian carmaker Mahindra and Mahindra Ltd last year to investigate the joint development of electric commercial vehicles.
A special purpose construction company (SPAC), also known as a blank check company, is the only purpose of using money from its first public offering to buy a private company, usually within two years. The company will then become private.
10X Capital went public in a $ 175 million IPO in November. It is backed by a New York City-based investment firm of the same name.
Cowen was a financial advisor to REE and an advisor to Wells Fargo Securities 10X Capital.
Reporting by Niket Nishant in Bengaluru; Edited by Maju Samuel