Exro acquiring SEA Electric

February 07, 2024

Exro Technologies Inc. announced an agreement to acquire SEA Electric.

The combined company aims to accelerate electrification with a patented, blue-chip-validated technology platform. SEA Electric produces commercial electric powertrains (SEA-Drive platform – https://www.sea-electric.com/products/sea-drive-power-systems/) and they’ll integrate this with Exro’s Coil Driver (their inverter https://www.exro.com/technology/coil-driver-traction-inverter), providing an end-to-end solution with enhanced performance and improved total cost of ownership for commercial vehicles.

SEA’s technology has been validated by large blue chip OEM customers with multi-year commitments from Mack (Volvo) and Hino (Toyota). Together, Exro and SEA target delivery of more than 1,000 propulsion technology systems to these OEMs in 2024, with aggregate revenues forecasted to be more than C$200 million for the calendar year 2024. Combined with an asset-light business model focused on technology, these targets provide for a defined path to profitability within 12 months of completing the Transaction.

The transaction values SEA Electric at approximately US$300 million (C$402 million). Exro will issue a combination of common shares and non-voting convertible preferred shares to SEA stockholders. The transaction is expected to close by the end of Q1 2024, subject to the approval of Exro shareholders and other customary closing conditions.

Following the completion of the transaction, the combined company will continue to operate under the name Exro Technologies Inc. and trade on the Toronto Stock Exchange (TSX) under the ticker symbol “EXRO”.

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