Barcelona-based QEV Technologies, a company that specialises in electric mobility vehicles, announced on Thursday, July 20, that it is in advanced negotiations with SPEAR Investments I, a Special Purpose Acquisition Company (SPAC) launched by AZ Capital and STJ Advisors.
With this deal, QEV Technologies will be listed on Euronext Amsterdam. The agreement is expected to be signed by the end of July. When the deal is completed, the merged firm will be known as QEV N.V.
“Pioneers and drivers of electric mobility”
QEV Technologies is part of the energy and environmental challenge that cities confront in transforming urban transportation and last-mile deliveries into more sustainable solutions.
Joan Ors, the founder of QEV Technologies, started this journey 20 years ago when she built a solar car that crossed Australia’s salt lakes. “The experience gained in WRC, TCR, WTCC, and Formula E competitions has enabled us to develop cutting-edge technology.”
For other automobile companies, this technical advancement has created new opportunities for technological advancement and the manufacture of full vehicles from scratch.
QEV Technologies, with its roots in electric motorsport, has over a decade of experience creating high-performance EVs for third parties.
The company established its own e-mobility section in 2020 with the goal of designing and producing electric buses and commercial vehicles with a focus on B2B clients and fleet operators.
With over 250 vehicles delivered to date and purchase orders for a further 1,000 vehicles by year’s end, the company anticipates 2023 sales of more than €60M.
If the merger with SPEAR is to go, the money collected would be used to fund QEV Technologies’ business strategy, which calls for selling about 16,000 EVs by the year 2027.
This year, QEV Technologies and its joint venture partner secured a contract to run a significant former Nissan factory in Barcelona’s free trade zone for the benefit of the firm and other parties. The site has a cost-competitive manufacturing capacity of 180,000 vehicles annually.
Sustainable Mobility in Spain and Europe
The estimated enterprise value of the new company, QEV NV, is €209M, and the proposed deal has already received more than €20M in capital commitments.
This amount is anticipated to be made up of non-redemption agreements with SPEAR’s current shareholders, new private investor participation through a PIPE (Private Investment in Public Equity) deal, and additional investment from the company’s current investor, Inveready, a Spanish investment firm.
By signing more non-redemption agreements with SPEAR shareholders or doing other PIPE transactions, the cash inflow is anticipated to rise even more before the planned business combination closes.
Joan Orus, CEO of QEV Technologies, says, “This proposed business combination with SPEAR demonstrates the strength of the project driven by QEV and the market’s support for companies in the e-mobility sector which combine technology, production capacity and orders.”
“The merger and listing on Euronext Amsterdam will allow us to take a major leap forward in sustainable mobility in Spain and Europe while further validating the re-industrialisation process at Zona Franca in Barcelona.”
“It will also have a strong positive impact on the creation of jobs and contribute to the success of the European automotive sector,” adds Orus.
The proposed deal calls for 100 per cent of QEV Technologies’ existing shareholders to stay involved in the firm by exchanging their shares for shares in the combined entity.
Among these are Inveready and GAEA Inversion, the fund management firm’s private equity vertical, which are now the company’s largest indirect owners and would enhance their original investment in QEV made in 2021.
QEV’s four dynamic business lines
The Spanish company operates across four dynamic business lines. These include QEV Motorsport, QEV Engineering, QEV Mobility, and QEV Academy.
QEV Motorsport: The company leads the most important electric championships of the world, such as FIA RX2e Championship, Nitrocross, Extreme E, G Series-E, ROC and Formula E.
QEV Engineering: QEV spearheads the development of prototypes and small-scale productions, offering a range of solutions in sustainable mobility. The company’s R&D team remains at the forefront of testing and implementing the latest advancements in electric mobility.
QEV Mobility: The ZEROID brand is a collection of sustainable EVs and platforms designed for urban fleets. The company provides vans, chassis, buses, and hydrogen/electric platforms for buses and heavy-duty vehicles, all with technological advances and zero emissions.
QEV Academy: It symbolises QEV’s dedication to supporting the education and specialisation of the next generations hoping to create a name for themselves in the field of electric motorsport. The company fosters new talent, providing a steady flow of knowledgeable people who will support future progress in this “thrilling” field.
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