- Embraer SA (NYSE:ERJ) has agreed to combine its urban air mobility business with publicly held special purpose acquisition company Zanite Acquisition Corp (NASDAQ:ZNTE).
- The resulting entity will be named Eve Holding, Inc and listed on the NYSE under the new ticker symbol, "EVEX" and "EVEXW."
- The business combination values Eve at an implied enterprise value of $2.4 billion and a total pro forma equity value of $2.9 billion.
- Embraer, through its subsidiary, will remain a majority stockholder with an approximately 82% equity stake in Eve Holding following the closing of the business combination.
- Eve will be led by co-CEOs Jerry DeMuro and Andre Stein.
- Transaction proceeds will be used to develop and commercialize Eve's urban air mobility solution spanning eVTOL design and production, service and support, fleet operations, and urban air traffic management.
- The transaction is expected to close in 2Q22.
- Eve has secured launch orders from 17 customers via non-binding letters of intent, resulting in a pipeline of 1,735 vehicles valued at ~$5.2 billion.
- Price Action: ERJ shares are trading higher by 15.8% at $16.09 on the last check Tuesday.
