Financial technology company Ideanomics (IDEX) has fully acquired California-based electric tractor maker Solectrac Inc by buying the remaining 78.6% stake of the company.
Ideanomics CEO Alf Poor said, “The acquisition of Solectrac is perfectly aligned with our EV and mobility initiatives. EV tractors have proven to be superior to their diesel counterparts not only when it comes to torque and overall performance, but also when you consider operating costs, reliability, and the positive impact they have on the environment.” (See Ideanomics stock analysis on TipRanks)
Poor added, “With farmers and business operators eager to transition from diesel to sustainable alternatives, we intend to make Solectrac the reliable, go-to brand not just here in North America, but across the globe.”
This acquisition bolsters Ideanomics’ portfolio of EV businesses offering premium products in the fast-growing agriculture sector poised to adopt EVs. Solectrac’s tractors are 100% battery-powered, and its portfolio is fully scalable and market-ready.
Solectrac plans to use the funds from the transaction for inventory build-up, augmenting supply chain and production capacity, increasing headcount, and enhancing its negotiating capabilities.
According to Ideanomics, the global agriculture tractor market is currently valued at $75 billion, and the below 40-HP segment contributes 60% of its demand.
Irwin estimates a four-fold jump in the company’s top line in 2021 and highlighted Ideanomics as a disruptive technology company.
Shares have surged about 185.4% over the past year.
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