- Lotus Technology (LOT, Financial) to acquire 51% of Lotus Advance Technologies via non-cash transaction.
- Acquisition integrates all Lotus brand operations, expected to be finalized by 2025.
- Deal includes Lotus UK's sportscar and hypercar manufacturing, and engineering consultancy services.
Lotus Technology (Nasdaq: LOT) announced its strategic acquisition of a 51% equity stake in Lotus Advance Technologies from Geely, utilizing a non-cash share exchange. This significant transaction, declared on April 16, 2025, will see Lotus Tech consolidating all Lotus brand operations under its control, aiming to boost brand equity and operational efficiencies.
The acquisition, anticipated to wrap up by 2025 pending regulatory approvals, will integrate valuable assets including Lotus UK's sportscar and hypercar manufacturing operations and the consulting services of Lotus Engineering. These additions are expected to enhance Lotus Tech's vertical integration, potentially reducing costs and improving profit margins.
The transaction's pricing structure is based on 1.15 times Lotus UK's 2024 revenue plus cash minus debt, with Lotus Tech issuing new shares at $10 each. This share exchange marks a substantial premium over LOT's current trading price of $1.324, offering insight into the strategic value seen in the consolidation.
Completion of this acquisition is poised to fortify Lotus Tech's financial profile by incorporating high-margin businesses and removing potential brand confusion by unifying all Lotus-branded vehicles under one corporate roof. Moreover, it positions Lotus more competitively in the luxury performance vehicle market, aligning its structure more closely with industry leaders like Ferrari and Porsche.
