- Ideanomics completed the acquisition of US Hybrid, a manufacturer and distributor of electric powertrain parts and fuel cell engines for medium and heavy-duty vehicles
- IDEX paid an aggregate purchase price of $50 million in cash and stock considerations
- The acquisition marked IDEX’s entry into the burgeoning EV powertrain market, which is expected to grow at a CAGR of 16% from 2020 to 2027
- The growth is due to several favorable factors that also bode well for the operations of IDEX and US Hybrid
- Ideanomics also announced that US Hybrid had received orders from Global Environment Products (“GEP”) for a fleet of all-electric street sweepers
Ideanomics (NASDAQ: IDEX) entered 2021 with the expectation that it would be yet another growth year. The company, which started the year by completing the acquisition of Wireless Advanced Vehicle Electrification (“WAVE”) and Timios, continued seeking new investments and acquisitions in revenue-based opportunities that would complement its existing operations segmented into two divisions – Ideanomics Mobility, dealing with electric vehicle (“EV”) business, and Ideanomics Capital, focusing on fintech.
Early this month, Ideanomics added yet another company to its growing list of wholly owned subsidiaries when it completed the acquisition of 100% of privately held US Hybrid, a manufacturer and seller of electric powertrain parts and fuel cell engines for medium and heavy-duty municipality vehicles, commercial trucks, buses, and specialty cars (https://ibn.fm/YiciM).
Expected to bring synergistic benefits to the various companies under the Ideanomics Mobility umbrella, the acquisition of US Hybrid is on the heels of a report by Market Research Future (“MRFR”), which anticipates the EV powertrain market to grow at a 16% CAGR between 2020 and 2027, reaching $135 billion (https://ibn.fm/pwI00). This projected growth is buoyed by several favorable factors that also bode well for the operations of both IDEX and US Hybrid. These include:
- An increase in the demand, production, and sales of EVs
- Improving EV infrastructure in multiple countries
- Stringent government regulations
- The burgeoning need for energy-efficient drivetrain systems
- The increasing adoption of electric powertrains in commercial vehicles
- Growing demand for electric powertrains in city trucks
Perhaps indicative of the burgeoning need and demand for energy-efficient electric drivetrain systems and cars, in line with the MRFR report, Ideanomics also announced that US Hybrid had received orders from Global Environment Products (“GEP”) for a fleet of all-electric street sweepers to deploy in various cities in the US and around the world.
GEP, a manufacturer of specialized, purpose-built, heavy-duty, and reliable street cleaning equipment, and US Hybrid already have an existing partnership that has led to the delivery of many clean street sweepers to clients in the US and Japan. And although the current order is simply an extension of this partnership, it is expected to add more than $1 million in revenue to US Hybrid’s balance sheet for the current financial year.
Each new, all-electric street sweeper will feature one 120-kW traction motor and lithium-ion batteries charged via an AC 20kW, SAE J1772-compliant charging system. Further, each sweeper is expected to save approximately 89 metric tons of carbon emission over the vehicle’s lifetime, equivalent to taking a total of 19 cars off the road for a whole year.
“We welcome Dr. [Gordon Abas] Goodarzi and his entire team to Ideanomics and are confident they will bring tremendous knowledge, innovation, and value to the company in addition to their synergistic alignment with many of our existing subsidiary brands,” said IDEX CEO Alf Poor. “I look forward to the accelerated commercialization and innovation US Hybrid will bring to Ideanomics’ ecosystem. It will benefit businesses, communities around the world, and more importantly, our planet.”
On his part, Dr. Goodarzi, Ph.D., PE, the CEO of US Hybrid, said: “Ideanomics has emerged as a true powerhouse in the commercial EV sector with a synergistic ecosystem of technologies and solutions that covers the entire value chain of electrification. We look forward to leveraging that strength going forward.”
For more information, visit the company’s website at www.Ideanomics.com.
NOTE TO INVESTORS: The latest news and updates relating to IDEX are available in the company’s newsroom at https://ibn.fm/IDEX
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