Microsoft, American Airlines-backed flying taxi startup to go public in new wave of $ 5 billion blank checks – –

Microsoft, American Airlines-backed flying taxi startup to go public in new wave of $ 5 billion blank checks – –

Electric and Flying Taxi Developer Set to Go Public in New York City by Merging with Special Purpose Acquisition Company, SPAC, in Latest Wave of Listings Bringing Over $ 5 Billion in Value company on the stock exchange.

Vertical Aerospace announced Thursday its merger with Broadstone Acquisition Corp BSN.UT,
bringing approximately $ 394 million in gross revenue to the company as part of a move to become publicly traded on the New York Stock Exchange. Broadstone shares were trading up 0.5% on Friday, after rising around 3.5% in pre-market.

Headquartered in Bristol, England, Vertical Aerospace was founded in 2016 by energy entrepreneur Stephen Fitzpatrick. The group develops electric vertical take-off and landing planes – fixed-wing planes that function like helicopters – for urban mobility solutions such as passenger taxis, medical evacuations and freight transport.

Its flagship, low noise, zero emission VA-X4 prototype will be able to carry five people over 160 km at a top speed of 202 km / h. Vertical Aerospace said it is expected to be profitable and stable with annual sales of less than 100 aircraft.

MSFT de Microsoft,
venture capital arm, American Airlines AAL,
Honeywell HON,
et Rolls-Royce RR,
were among those who invest in the company through the private equity offering, or PIPE, the group said. The company said it had up to 1,000 pre-orders of aircraft worth up to $ 4 billion from American Airlines and aircraft leasing company Avolon, as well as an option to pre-order from Virgin Atlantic.

The deal with Broadstone is expected to be finalized in the second half of the year. It values ​​the group and its parent company SPAC at an enterprise value of $ 1.84 billion and a net worth of $ 2.2 billion, based on the price of $ 10 per share in PIPE.

Vertical Aerospace is one of two European technology companies that this week announced plans to go public in New York via a blank check merger, as part of a new wave of investment amid the cooling of the PSPC market boiling from 2020-21.

German sports e-commerce platform Signa Sports United announced Friday that it will go public on the NYSE by merging with Yucaipa Acquisition Corp YAC,
+1,12 %.
The group said the roughly $ 300 million investment in PIPE was funded by billionaire Ron Burkle, who runs Yucaipa and owns the private club chain Soho House, as well as institutional investors and sovereign wealth funds.

The move is Signa’s bid to dominate the sports e-commerce space, with expected net revenues of around $ 1.6 billion by September 2021. Signa’s deal with Yucaipa also includes the acquisition of Wiggle, a popular UK online bicycle brand. Wiggle is currently owned by private equity group Bridgepoint, which bought the brand ten years ago and is expected to receive shares in the new public company.

Signa Sports United’s deal with Yucaipa is expected to close in the second half of 2021 and gives the combined new company a corporate valuation of around $ 3.2 billion. Thus, between Vertical Aerospace and Signa, more than $ 5 billion in enterprise value is heading this year to the New York Stock Exchange from high-growth European companies.


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