UK-based Tevva has announced a proposed merger with ElectraMeccanica, a US-based specialist in electric vehicle design and assembly, to accelerate business growth for the two companies across UK and Europe and signals a North American market entry.
The proposed merger, the formalities of which are expected to close by the end of 2023, will create a business operating from factories in Tilbury, UK and Arizona, USA with a combined revenue target of between $1.3 and 1.5 billion. Under the terms of the deal ElectraMeccanica shareholders will hold 23.5% of the combined company, with Tevva shareholders retaining the 76.5% balance. Tevva will benefit from an immediate $6 million credit facility, providing working capital to accelerate the delivery of trucks to customers.
Earlier this year Tevva announced it had secured full series European type approval for its battery electric 7.5-tonner and has a hydrogen fuel cell vehicle in preparation for the regulatory type approval. ElectraMeccanica has recently inaugurated a new factory in Masa, Arizona, giving the newly-formed company a footprint on both sides of the North Atlantic.
The proposed merger follows an exhaustive evaluation process, culminating in a formal recommendation by the Strategic Committee of ElectraMeccanica’s Board of Directors to pursue a partnership with Tevva. Upon the merger’s closure, the combined entity will be known as Tevva, Inc., and is expected to be domiciled in Delaware, trading on The Nasdaq Capital Market under the ticker symbol TVVA.