Italy’s Exor said on Monday it had agreed to pay $200 million for an 8.87% stake in U.S.-based shared mobility company Via Transportation, in what would be the first step by the Agnelli family’s investment firm into the tech industry.
The price agreed values all of Via Transportation at about $2.25 billion.
“At this uniquely challenging moment, it is more important than ever to work creatively for a more sustainable future beyond these difficult days,” Exor Chairman and Chief Executive John Elkann said in a statement.
Italians have been under nationwide lockdown for three weeks because of the coronavirus outbreak, which has killed more than 11,500 people in Italy, about a third of all global fatalities.
The Exor-Via transaction, which is subject to antitrust approval, is expected to close in the second quarter, the company said. An Exor representative will join Via’s board.
New investors Shell, Macquarie Capital and Mori Building also participated in the round, as did existing investors, Via said in a statement.
“The financing round comes at a critical time as cities grapple with unique transportation needs during the COVID-19 crisis,” it said.
Founded in 2012, Via specializes in urban public mobility systems, competing with operators such as Uber or Lyft. It launched its first platform for on-demand shared transit in New York City in 2013.
Via, available in more than 70 cities in 20 countries, has provided over 70 million rides around the world to date.
Its website says its partners are cities, private operators, school districts, corporations, and universities, and that its services include first and last mile transportation, school buses, services for “transit deserts” and non-emergency medical solutions, fitting into existing infrastructure.
Exor, whose investments span from manufacturing to insurance, media and football teams, has controlling stakes in carmakers Fiat Chrysler and Ferrari and in industrial vehicle maker CNH Industrial.
This month Exor signed a memorandum of understanding (MoU) to sell its 100% stake in Bermuda-based reinsurer PartnerRE to France’s Covea for $9 billion in cash.
Despite market turbulence during the coronavirus pandemic, on Friday Covea said it was committed to the planned acquisition, although it did not give further details.
In November, before talks to sell PartnerRe were made public, Elkann said Exor would have 3.6 billion euros ($4 billion) cash by 2022 to spend on acquisitions.
That sum includes a planned special dividend of around 1.6 billion euros that Exor would get from the announced merger between FCA and French rival Peugeot.
Analysts believe, however, that the special dividend could be reduced or postponed because of the coronavirus crisis.
Source: Reuters.com