Eve, an urban air mobility platforms provider established by Embraer, has agreed to merge with blank check company Zanite Acquisition (Nasdaq: ZNTE) in a transaction that would take the former public and give the combined entity a pro forma equity value of $2.9 billion.
The boards of directors of Embraer and Zanite have unanimously approved the transaction that is expected to conclude in the second quarter of 2022, Eve said Tuesday.
Jerry DeMuro, formerly CEO of BAE Systems Inc. and a three-time Wash100 Award winner, and Andre Stein, who has held leadership positions at Embraer for more than 20 years, will serve as co-CEOs of Eve.
Eve emerged from the market accelerator EmbraerX and launched as an independent company in October 2020. The company designs and produces electric vertical takeoff and landing vehicles and provides urban air traffic management, fleet operations and related support services.
“We believe that the urban air mobility market has enormous potential to expand in the coming years based on an efficient, zero-emissions transport proposition, and that with this business combination, Eve is very well positioned to become one of the major players in this segment,” said Francisco Gomes Neto, president and CEO of Embraer.
Eve will list on the New York Stock Exchange under the ticker symbols “EVEX” and “EVEXW” upon the deal’s completion, subject to approvals by stockholders and regulators and other customary closing conditions.
Embraer will own approximately 82 percent of the combined company upon the merger’s closing.
The transaction is backed by approximately $237 million of cash from Zanite and a private investment in public equity of common stock valued at $305 million, including commitments from Embraer, Zanite’s sponsor and a consortium of financial and strategic investors, including Azorra Aviation, BAE, Falko Regional Aircraft, Rolls-Royce, Bradesco BBI, Republic Airways and SkyWest.
White & Case served as Zanite’s legal adviser, while Jefferies and BTIG acted as financial and capital markets advisers to the special purpose acquisition company.
Skadden, Arps, Slate, Meagher & Flom and Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados advised Embraer and EAH on the deal’s legal aspect. Raymond James & Associates served as financial and capital markets adviser to Eve. The UAM company also tapped Banco Santander (Brasil) S.A., Banco Bradesco BBI S.A. and Banco Itau International as financial advisers.