Israeli Startup REE Plans Merger With 10X Capital SPAC

  • Blank-check deal values combined entity at about $3.1 billion
  • REE set to own more than 80% of the combined company

REE Automotive, an electric-vehicle technology startup, has agreed to go public through a merger with 10X Capital Venture Acquisition Corp., a blank-check company, according to people with knowledge of the matter.

A transaction, which features a $300 million private investment in public equity, or PIPE, is set to give the combined entity an enterprise value of about $3.1 billion, said the people. REE's existing investors will own more than 80% of the combined company, and a deal could be announced as soon as Wednesday, they said.

A REE representative declined to comment and a 10X spokesperson didn't immediately respond to a request for comment

REE, a Tel Aviv-based company led by co-founder and Chief Executive Officer Daniel Barel, makes technology including REEcorner, which integrates all drive components into the arch of the wheel, and REEboard, a flat, modular chassis that can be used as a platform for autonomous delivery vehicles, trucks, shuttles and robo taxis. The company has said its platform can be used for battery-powered or fuel-cell vehicles.

Iochpe-Maxion SA to manufacture and develop a wheel design and chassis technology. REE also has partnerships with Mitsubishi Corp., American Axle & Manufacturing Holdings Inc., KYB Corp., Musashi Seimitsu Industry Co. and NSK Ltd.

REE expects to have 16 assembly plants in hubs such as the U.S., Germany and Japan by 2026, with annual capacity of about 600,000 units, a person familiar with the matter said. It hopes to begin mass production next year, and has signed MOUs for orders worth $5.1 billion through 2026.

Magna International Inc.

A flood of electric-vehicle and related companies have agreed to go public through SPACs, including Arrival Ltd., Lion Electric, EVgo Services LLC, , Lightning EMotors and Microvast.

Source: Bloomberg – Israeli Startup REE Plans Merger With 10X Capital SPAC