Dallas-based Blackboxstocks Inc., which combines financial technology and social media to provide real-time proprietary analytics for stock and options traders, announced that it has officially agreed to acquire Evtec Aluminium Limited (Evtec). The acquisition is anticipated to be completed during the first quarter of 2024.
Evtec provides exclusive essential components for the Electric Vehicle (EV), Hybrid, Performance, and Luxury OEM automotive markets. They supply these parts to brands such as JLR (formerly Jaguar Land Rover), Aston Martin, Ford, Bentley, and other automotive suppliers, including Dana, American Axle, and Cox Powertrain.
About the acquisition
Following the merger, Blackbox and Evtec Aluminium common shareholders will control 26.7 per cent and 73.3 per cent of the projected 12,000,000 common shares outstanding. Blackbox intends to purchase 87 per cent of Evtec Automotive during the first quarter of 2024. By including Evtec Automotive in the transaction, Blackbox stockholders would maintain ownership of 9.5 per cent of the merged businesses.
Blackbox shareholders officially registered before completing the transaction will be granted a contingent value right (CVR). This CVR will entitle them to a portion of the profits obtained by the Company from selling or separating the current Blackbox fintech operations within 24 months after the merger is finalized. Before the shutdown, Blackbox activities will be relocated to a new subsidiary.
After the transaction, David Roberts will take over the position of Chairman and CEO of the parent Company. Gust Kepler will retain his position as the CEO of Blackbox's fintech activities. At the same time, Robert Winspear will continue as a director and CFO of the parent company after the transaction. Evtec will designate three more autonomous directors to the Board of the Company.
Gust Kepler, Chief Executive Officer of Blackbox, said, "This is a great transaction that delivers outstanding value for Blackbox stockholders. Not only will our stockholders retain the current value of the Blackbox operations via a contingent value right (CVR), but they will also receive a significant interest in Evtec's operations going forward. As a subsidiary of the parent company, Blackbox's fintech operations will continue to create and provide innovative tools and analytics for traders. We look forward to completing the transaction in Q1 2024 and delivering maximum value to our shareholders."
Evtec Aluminium's future strategy and operations
Evtec plans to enhance its robust organic growth via future acquisitions. With its proven history of consistently providing superior components punctually, Evtec is in a favourable position to acquire firms that possess substantial order volumes but lack Evtec's operational expertise.
Evtec Aluminum's revenue forecast for fiscal 2024, which ends June 30, has risen by more than 60 per cent from the previous year. With roughly $778 million in orders slated for delivery starting in March 2024, Evtec has a record order demand in its pipeline. The order book has grown by roughly $430 million in the last eight (8) months and is predicted to grow by at least $150 million more by March 2024.
James Whittle, Global Purchasing and Supplier Quality Director for JLR (Jaguar Land Rover) said, "JLR is very supportive of Evtec becoming a public company and moving ahead with its investment programme to further increase its capacity and capability to supply key components for our EV vehicles as they are a key strategic partner for us and our growth strategy."
Evtec's strategy encompasses both organic and acquisition expansion. Companies with solid order books for largely single-sourced components at reasonable values are among Evtec's acquisition prospects. The Company has several off-market prospects that offer significant growth potential.
Evtec's goal in the United States is to work with established brands and distribution to develop higher profit areas fueled by Evtec's partnerships with well-known worldwide brands in the industry, including the racing and performance sectors. Evtec expects its U.S. launch to deliver substantial revenue growth in 2024 and beyond via organic and acquisition growth, creating prospects for better margin sales and new distribution channels.
David Roberts, Chairman and CEO of Evtec, added, "The market opportunity to be a single-source, strategic supplier to global OEMs in the EV and Hybrid automotive sector is significant and growing exponentially. The global pressures on reducing supply chain risk fragility, increasing localization and near-shoring, combined with proven competency in complex assemblies and precision parts, underpins the strong growth we are experiencing at Evtec. Access to the public markets provided by this transaction is compelling for all of our stakeholders as it supports our strategic plan that includes expansion of our global footprint by both organic growth and acquisition."
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