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December 22, 2021updated 23 Dec 2021 1:39pm

Eve to go public through SPAC merger; bags new eVTOL orders

Embraer will hold 82% of the resulting firm’s equity after the transaction.

Eve Air Mobility, the electric aircraft unit of Embraer, is eyeing a New York Stock Exchange (NYSE) listing in 2022, through a combination with SPAC Zanite Acquisition.

Embraer will hold 82% of the resulting firm’s equity after the transaction, which values Eve at $2.4bn.

The deal includes up to $237m in cash from Zanite. along with a $305m PIPE.

It is anchored by Embraer, Zanite Sponsor, as well as a consortium of partners, comprising Azorra Aviation, Rolls-Royce, SkyWest, BAE Systems, Bradesco BBI, Falko Regional Aircraft, and Republic Airways.

Proceeds of the deal will be used to develop and commercialise Eve’s urban air mobility capabilities.

Eve is expected to start trading under the ticker EVEX, with a cash position of around $512m.

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The deal has already secured the nod of Embraer and Zanite boards. It now awaits the nod of regulators and stockholders, with completion anticipated in the second quarter of 2022.

Additionally, Eve unveiled multiple new electric vertical takeoff and landing aircraft orders.

This includes Republic Airways’ memorandum of understanding (MoU) and Letter of Intent (LOI) for the procurement of up to 200 eVTOL aircraft from Eve.

Through this partnership, the companies will establish a network throughout the Central and East Coast markets of the US.

For developing the first Urban Air Mobility (UAM) flights with Eve’s aircraft, the entities will form a working group that will assess the needs of upcoming airline operating certificates (AOCs).

This will enable the deployment of Eve’s aircraft in specific markets and assignments.

The group will also study the viability of additional services from other kinds of urban air vehicles for entering new markets.

Republic Airways president and CEO Bryan Bedford said: “Republic’s commitment to provide sustainable aviation solutions to our codeshare partners, American, Delta and United, relies on continued investments in both workforce development and emerging clean technologies.

“The strategic relationship with Eve builds upon decades of a successful relationship with Embraer that has expanded access to regional airports across the country, and we believe Eve’s UAM platform could play a critical role in our future workforce development initiatives.”

Azorra too signed a LOI for ordering up to 200 of Eve’s eVTOL aircraft.

The Eve-Azorra alliance will look to set up a base of operators that plan for scheduled UAM missions and help provide the infrastructure required to support eVTOL flights globally.

Last month, Thales, Airbus and Diehl Aerospace signed a trilateral agreement to develop the central flight control system of CityAirbus NextGen.

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