ECARX reached an agreement with COVA Acquisition Corp, and the company will list on the Nasdaq by way of a special purpose acquisition company (SPAC) approach.

ECARX, a tech company that develops hardware and software solutions including infotainment head units, digital cockpits, vehicle chip-set solutions, a core operating system, and an integrated software stack, is expected to be listed on the Nasdaq through the SPAC process in Q4 2022.

After COVA, a blank check company, completes the acquisition of ECARX, the tech company will be valued at $3.82 billion, according to market expectations.

Moreover, the company will use the funds raised from the transaction to roll out its new products, expand its outreach into international markets, and undertake strategic acquisitions and investments. 

ECARX closed three financing rounds and the proceeds totaled around $650 million. Its major investors include Geely Group, Baidu, Susquehanna International Group, and China’s State-Owned Capital Venture Fund.

To date, the company’s products are installed on more than 3.2 million vehicles, and its revenue reached $436 million in 2021. Meanwhile, the company partners with Geely, Volvo, Mercedes-Benz, and Lotus. Most notably, Li Shufu, the founder and chairman of Geely, is also the co-founder and largest investor of ECARX.