Xos, Inc., a leading electric truck manufacturer, has acquired ElectraMeccanica, a designer and assembler of electric vehicles, in an all-stock transaction. This strategic move, unanimously approved by both companies' boards, enables Xos to access ElectraMeccanica’s approximate $48.5 million cash balance, supporting the demand for zero-emission medium-duty electric trucks. The transaction aims to strengthen Xos's market position, leveraging ElectraMeccanica's financial resources to scale Xos's commercial electric vehicle production.

Xos, known for its medium-duty commercial electric vehicles, has delivered over 600 units to fleet customers since 2020, boasting a 12% GAAP gross margin in Q3 2023. The company’s success is backed by increasing regulatory requirements for zero-emission vehicles and significant cost savings compared to diesel alternatives.

Post-acquisition, ElectraMeccanica shareholders will own about 21% of Xos. The deal, anticipated to close in the first half of 2024, awaits approvals from shareholders of both companies, court sanction, and customary closing conditions.

ElectraMeccanica, aiming to optimize its assets for sustained shareholder value, initiated a strategic review process, culminating in the decision to merge with Xos. The combined entity will be led by Xos’s management team, with a board comprising six directors from Xos and three from ElectraMeccanica.

Greenhill & Co. Canada Ltd. and Snell & Wilmer L.L.P., along with McCarthy Tétrault LLP, advised ElectraMeccanica. Houlihan Lokey, Cooley LLP, and Osler, Hoskin & Harcourt LLP served as advisors for Xos.