COVA Acquisition Corp. (Nasdaq: COVA), a special purpose acquisition company has announced its business combination agreement with mobility tech company ECAX Holdings. The combined company is approximately valuated at $3.82 billion.
ECARX holdings is an automotive tech firm that manufactures hardware and software products for EVs. The aim of this company is to take the electric vehicles to the next generation with smart connected cockpits and unsupervised driving.
The Combined company will be listed on Nasdaq under the ticker symbol ECX and the de-spac process is expected to close in the 4th Quarter (Q4) of 2022. The merged company’s future goal is to accelerate its technological development and product rollouts. They are also planning to take strategic decisions and investments for the international expansion of the public company.
Two Popular SPAC Deals Terminated
1. RedBall Acquisition Corporation (NYSE: RBAC)
RBAC, a special purpose acquisition company announced that it has mutually terminated the business combination agreement with ticket marketplace SeatGeek. The reason behind the termination is mentioned as the unfavorable market conditions and difficulties faced by growth technology companies in the public market.
The SPAC RBAC initially announced its merger with SeatGeek at a $1.25 billion valuation in October 2021. The New York-based SeatGeek is an event ticket marketplace that provides a marketplace to enterprise clients or individuals and consumers. SeatGeek will now continue to remain a private company unless it finds some good deal to go public.
2. Magnum Opus Acquisition Limited (Nyse: OPA)
Forbes Global Media Holdings Inc. and Magnum Opus Acquisition Limited (OPA) have announced the termination of the business combination agreement. The news was reported by the New York Times on Tuesday. Previously, the business combination of OPA with Forbes was valuated at $630 million.
On top Binance also announced that it will do a strategic investment of $200 million in the combined company. But with the recent termination announcement news, the Binance’s spokesperson has said that they will continue to review all possible options to look forward and work with Forbes. The main reason why the SPAC deal is terminated is not clear but we suspect it is because of the recent poor performances of SPAC mergers. Also, Forbes told that their digital transformation has delivered them double-digit revenue in past years. This means that the business merger with SPAC right now would be a bad option to go through.
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