EV Truck Supplier Xos Inc. Acquires ElectraMeccanica

Posted March 28, 2024 at 10:54 am

UniFirst Corp. is one of several companies with large fleets that have purchased EV trucks from Xos Inc.

In a move aimed at strengthening electric vehicle (EV) manufacturer Xos Inc.’s position in the burgeoning EV commercial sector, the Los Angeles-based company recently announced the completion of a merger with a rival firm, ElectraMeccanica Vehicles Corp., according to a news release.

The merger, announced earlier this year, featured an all-stock transaction that’s expected to add $48 million to Xos’ balance sheet, while providing the company with capital to fund investment.

“The growth capital received in the transaction, combined with our reduction of cash burn, provides an important pathway to profitability as we scale deliveries over the next several quarters,” said Dakota Semler, CEO and co-founder of Xos, which is a TRSA supplier partner. “Xos is gross-margin positive and has now charted our course to being free cash-flow positive.

The company delivered a record 110 vehicles to fleet customers last year, including UniFirst Corp., UPS, Penske and others, the release said. The addition of cash balance from ElectraMeccanica, Burnaby, British Columbia, Canada, has positioned Xos to continue its expansion and meet the robust demand for alt-fuel vehicles, Semler said. It also will help the company control costs, while enhancing quality. “We are confident that this acquisition will further strengthen Xos’ commitment to operational excellence, customer-focused vehicles and efficient capital deployment,” said Giordano Sordini, COO and co-founder of Xos Inc.

Under the terms of the agreement, ElectraMeccanic shareholders receive 0.01433739 shares of Xos common stock for each common share of ElectraMeccanica stock held immediately prior to the closing of the agreement. Consequently, former shareholders of ElectraMeccanica now own roughly 21% of Xos. Click here for details.