08/14/2019 | Press release | Distributed by Public on 08/14/2019 06:59
NEW YORK, Aug. 14, 2019 /PRNewswire/ -- Ideanomics Inc. (Nasdaq: IDEX) has today announced a deal between its NETS division and Asian new energy leader GCL . The agreement will see the companies take an interest in Ideanomics' recently-created NETS division in exchange for contributing large-scale, guaranteed revenues through vehicle sales, as well as real-time vehicle data monitoring capabilities to help proactive management of enterprise fleets.
Under the terms of the deal, GCL will acquire 49.9% of NETS, in exchange for an exclusive commitment for NETS to receive sales of 500,000 vehicles over three years as part of its performance criteria for the ownership interest, with share-based claw back formulas in the event of non-performance. Upon closing of the deal, NETS will renamed as Mobile Energy Group (Mobile Energy Group).
Additionally, the agreement requires the parties to cooperate to further develop and expand GCL's new investment fund of RMB 5 Billion, which is currently in development, to reach up to RMB 10 Billion. Ideanomics' MEG division and GCL will co-manage the fund 50:50 as both general partners and fund managers, with the objective of securing additional strategic partners for investment into new energy initiatives.
'We are very impressed with the business model Ideanomics and Dr. Wu has put together for the monetization of the value chain for new energy transportation,' said Zhu Gongshan, Chairman of GCL. 'We look forward to working with them on this exciting partnership, which will see us provide clean energy vehicles, charging and power systems, and real-time fleet monitoring for fleet customers. It's an exciting time for the industry, and we have selected Ideanomics to partner with us on this journe'.
Ideanomics and GCL will also contribute their resources in the areas of charging networks, fuel cell and batteries, and related partnerships, along with real-time vehicle data monitoring, to round out a full-service sales-to-financing-to-charging offering which Ideanomics has termed S2F2C. MEG will earn fees through group buying commissions, lease financing and ABS financing fees, charging network fees, and the licensing of real-time fleet management monitoring services.
The expanded MEG (previously NETS) division will establish its own Board of Directors. Both parties will contribute two directors each, with Ideanomics nominating the Financial Controller and Chairman, GCL nominating the CEO, and the parties agreeing on an independent director to complete the 5-person board. The deal sees MEG create a 10% share pool for management incentives which will aid in recruiting and retaining top talent to MEG.
'This is a significant deal in the EV space, encompassing large-scale sales, financing, and charging network activities, as well as next-generation real-time vehicle data monitoring that will usher in a new level of clean tech fleet management' said Alf Poor, CEO of Ideanomics. 'Partnering with mature companies that have multiple interests in the EV market is something Ideanomics has been pursuing to reinforce its position in this fast-growing global industry sector, which is led by China. Asian countries, with their large populations, are pursuing an accelerated path to replacing fossil fuel-powered vehicles that the rest of the world has been slow to embrace, with only one or two exceptions. This deal puts Ideanomics at the forefront of new energy vehicle enablement and will result in NETS, now MEG, being able to both consolidate its position in Asia as well as expand globally through partners that bring significant, established size and scale to the table to help us meet our near and long-term objectives'.
About GCL Group
Golden Concord Holdings Limited (GCL Group), registered in Hong Kong (0451.HK), is a diversified energy conglomerate that specializes in new and clean energy covering various industrial fields of electric power, PV manufacturing, natural gas, industrial park, integrated circuit materials, mobile energy and new electric ecology. Holding assets across China, Africa, Middle East, North America, Southeast Asia and Europe, with several listed companies in A-shares and H-shares, GCL ranks among Top 3 global new energy enterprises in recent three years. As the 139th among Top 500 Chinese enterprises in 2018, GCL has been ranking the top in the new energy industry for consecutive years.
Ideanomics is a global Financial Technology (Fintech) company for transformative industries. Ideanomics combines deal origination and enablement with the application of technologies such as artificial intelligence, blockchain, and others as part of the next- generation of smart financial services. Our projects in New Energy Vehicle markets, Fintech, and advisory services provide our customers and partners better efficiencies, technologies, and access to global markets.
Ideanomics, through its investments, along with its partners curate innovation around the globe through hubs and centers that foster a pipeline of technological excellence in cleantech, fintech, tradetech, agritech, regtech, insuretech, playtech, healthtech, cyber security, and more.
The company is headquartered in New York, NY, and has offices in Beijing, China. It also has a planned global center for Technology and Innovation in West Hartford, CT, named Fintech Village.
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