Ideanomics Inc. (NASDAQ: IDEX) Completes the Acquisition of US Hybrid Marking Entry into Burgeoning EV Powertrain Market

  • 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 

About Green Car Stocks

Green Car Stocks (GCS) is a specialized communications platform with a focus on electric vehicles (EV), as well as other emerging market opportunities in the green sector. The company provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to nearly 2 million followers, and (5) a full array of corporate communications solutions. As a multifaceted organization with an extensive team of contributing journalists and writers, GCS is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, GCS brings its clients unparalleled visibility, recognition and brand awareness. GCS is where news, content and information converge.

To receive SMS text alerts from Green Car Stocks, text “Green” to 21000 (U.S. Mobile Phones Only)

For more information, please visit https://www.GreenCarStocks.com

Please see full terms of use and disclaimers on the Green Car Stocks website applicable to all content provided by GCS, wherever published or re-published: https://www.GreenCarStocks.com/Disclaimer

Green Car Stocks
San Francisco, California
www.GreenCarStocks.com
415.949.5050 Office
[email protected]

Green Car Stocks is part of the InvestorBrandNetwork.

Archives

Select A Month

Contact us: (310) 299-1717