09:08 AM EDT, 09/17/2024 (MT Newswires) -- VivoPower International's ( VVPR ) shares surged 24% in Tuesday's premarket session after the company said it signed an exclusive agreement to merge with Future Automotive Solutions and Technologies.

The company said the acquisition implies an equity valuation of $556 million for VivoPower ( VVPR ) and $578 million for Future Automotive Solutions and Technologies.

VivoPower ( VVPR ) said the proposed merger will involve issuing 5.72 million restricted new shares in VivoPower ( VVPR ) to Future Automotive shareholders at $101 per VivoPower ( VVPR ) share, and that it expects VivoPower ( VVPR ) shareholders to own 49% of the pro forma combined group.

The companies said they are aiming for the potential merger to be completed Dec. 31, which is conditional on the completion of the merger of VivoPower's ( VVPR ) Tembo unit and the Cactus Acquisition Corp., which was announced in August.

Price: 2.3300, Change: +0.42, Percent Change: +21.99