Israeli autotech company REE, developer of a modular platform for electric vehicles, will be floated in the US through a merger with an SPAC, 10X Capital Venture Acquisition Corp. The flotation will be at an estimated valuation of $3.1 billion before money, or $3.6 billion after money.
REE grew out of smart wheel company SoftWheel, founded by Daniel Barel and Ahishay Sardes. Its main product is a modular vehicle platform called REEboard, which includes all the components required for a functioning electric vehicle, powered by battery or fuel cells, and on which a wide variety of vehicle bodies can be mounted: distribution trucks, robotic taxis, and so on, relatively cheaply. This market has gathered considerable momentum in the past year with the global jump in demand for electric cars and the steep rise in the share price of electric vehicle company Tesla.
In the past few months, REE has announced cooperation agreements with Mahindra, Mitsubishi, and other auto industry companies, and it is gearing up for serial production of its platform. One of its competitors in this niche, Canoo, held an IPO last year at a valuation of $2.4 billion.
REE's intention of going public was first revealed by "Globes" in August 2020. Among the investors in the company are Delek Automotive Systems controlling shareholder and CEO Gil Agmon (privately), the Allied group, and Israel Land Development Insurance Holdings.