ElectraMeccanica, a designer and assembler of electric vehicles, and Tevva, a pioneer in electric medium- and heavy-duty commercial vehicles, have entered into a merger agreement.
The attending members of the boards of directors of both companies unanimously approved the proposed transaction. The proposed transaction is intended to accelerate their combined ability to capture the growing opportunity in commercial electric trucks.
ElectraMeccanica will own 23.5 per cent of the combined company and Tevva will own 76.5 per cent in the new company.
The proposed transaction is expected to close in Q4 2023.
Tevva recently commenced deliveries of its 7.5-tonne battery-electric truck to commercial fleet customers focused on urban delivery – a critical and high-growth segment of the overall commercial truck market for delivery-dependent urban areas.
Tevva supports its current product with a unique and purpose-built, commercial-grade electric battery system, and its future product portfolio is being developed to include a proprietary hydrogen range-extender technology, which delivers a differentiated and sustainable dual-energy solution.
Tevva’s existing 110,000-sq-ft EV manufacturing facility in Tilbury, UK, would be complemented by ElectraMeccanica's recently-commissioned 235,000-sq-ft facility in Mesa, Arizona, which is expected to enable the combined company to scale its production to serve the UK, European and US markets.
David Roberts, current Director of Tevva and anticipated incoming Executive Chairman upon the closing of the proposed transaction, said: 'Since Tevva's founding more than ten years ago, we have focused our engineering and product development capabilities on developing a portfolio of zero-emission commercial vehicles that have generated significant customer interest. Our vehicles have undertaken more than 300,000 miles of testing and operating experience in real-world conditions.'