Exro Technologies Inc. acquired SEA Electric Inc. in a merger valued at approximately US$300 million (C$402 million). This strategic move, aimed at enhancing Exro's electric vehicle (EV) technology offerings, is expected to accelerate revenue growth and profitability. The combined entity, retaining the Exro Technologies Inc. name, will continue trading on the Toronto Stock Exchange under the ticker "EXRO".

The merger unites Exro's and SEA's complementary EV technologies, aiming to boost growth and profitability. It is anticipated to deliver over 1,000 propulsion systems to OEMs like Mack (Volvo) and Hino (Toyota) in 2024, with projected revenues exceeding C$200 million.

Post-merger, Sue Ozdemir remains as CEO, joined by Tony Fairweather as Chief Product Officer and Darrell Bishop as CFO. The combined company's board will include up to nine members.

In the transaction, Exro issued approximately 153.8 million common shares and 168.7 million convertible preferred shares to SEA shareholders, resulting in a total consideration of around US$248 million (C$332 million), plus assuming US$46 million (C$62 million) in SEA net debt.

Legal advisors were Stikeman Elliott LLP and Dorsey and Whitney LLP for Exro, and Gibson, Dunn and Crutcher LLP and Blake, Cassels and Graydon LLP for SEA. The transaction is expected to close by the end of Q1 2024, subject to Exro shareholder approval.