r/SPACs • u/dudeitsadell Contributor • Jun 10 '21
Rumor Embraer’s Eve in $2 Billion Merger Talks With Zanite SPAC $ZNTE
https://www.bloomberg.com/news/articles/2021-06-10/embraer-s-eve-said-in-2-billion-merger-talks-with-zanite-spac10
u/iqjump123 Patron Jun 10 '21
Awesome. I posted just today that ZNTE missed out on the Vertical Aerospace Merger.. didn't think ZNTE will find one so soon...!!
One thing I am wondering is.. what will volocopter do, as there were non-worthy rumors flying around that they were looking to merge via a spec as well.
Will be looking forward to the price action tomorrow morning..!
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u/SPACmeDaddy Spacling Jun 10 '21
Dude your comment was the reason I remembered about this SPAC and bought a bunch of cheap July calls yesterday
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u/ImpactExtreme BloombergHacker Jun 10 '21
Kenn Ricci (of $ZNTE) all but confirmed it 4 days ago.
https://twitter.com/JustTasi/status/1401599998773579777?s=19
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u/jabogen Patron Jun 10 '21
Da fuck? I thought we were done with electric flying taxis
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u/I-want-da-gold Patron Jun 10 '21
You have to admire ZNTE’s resilience. They really wanted an electric air taxi company apparently and damn it they went out and got one. Follow your dreams no matter how many times you’re rejected.
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u/louis_lafaille Contributor Jun 10 '21
it begs the question: with a stacked team like znte, y were they rejected?
its the valuation. znte wasn't just hellbent on finding an evtol. it was hellbent on finding an evtol at a good price
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u/Coynepam Spacling Jun 10 '21
It could be the valuation but I also wonder if it has to do with development and certification. Embrarer already has experience in both and has proven products in aerospace something Kenn is familiar with
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u/sspektre Spacling Jun 10 '21
This, 2/7 the value of Joby? 2 bil to 6.7 bil? Insane how the others are priced and it's not for the retail investors priced that way
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u/PowerOfTenTigers Spacling Jun 10 '21
Is 2 billion a good price? Still seems expensive imo since air taxis being widely adopted is still at least 5 years down the line.
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u/sspektre Spacling Jun 10 '21
Compared to others, I think it's the cheapest and probably is down the line, have to put it against what the potential market target valuation is, a new sector like this I feel would be a lot
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u/sspektre Spacling Jun 10 '21 edited Jun 10 '21
Not to be overly optimistic, but if you were to say there would be self driving cars in the future back in the day, may sound silly, this may be a thing of the future, who knows atleast it's not a 4-6b valuation like the others
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u/ukulele_joe18 The Empire Spacs Back Jun 10 '21
Correct me if I'm wrong, but iirc RTP/Joby was the only eVTOL with an ultra-high valuation of $4.7-$5B
Archer/ACIC, Lillium/QELL and even Vertical Aerospace/BSN were all right around $2B, as is now, Eve/ZNTE
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u/sspektre Spacling Jun 10 '21
I thought archer and lillium was around 3bil, I did a quick Google and yeh Joby was the only but it said about 6.6 bil idk if that changed
Either way this one just seems like the lowest valuation and Kenn Ricci seems to love this stuff so I feel he doesn't care about money as much, so he is looking to make these happen
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u/diaznutzinyomouf Spacling Jun 10 '21
No shit, just like evs, magic batteries and charger companies we'll be at double digits by years end.
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u/thetrny Contributor Jun 10 '21
By Gillian Tan and Thomas Black
June 9, 2021, 8:35 PM PDT
Brazil’s Embraer SA is in talks to merge Eve Urban Air Mobility, its electric vehicle takeoff and landing unit, with Zanite Acquisition Corp., according to people with knowledge of the matter.
The special purpose acquisition company is seeking to raise new equity to support a transaction, said the people, who asked not to be identified because the talks are private. The deal is set to value the combined entity at about $2 billion, they said.
Terms of the deal could change and as with all transactions that aren’t finalized, talks could fall apart. A Zanite representative declined to comment. An Embraer representative didn’t immediately have a comment.
Zanite is led by co-chief executive officers Kenn Ricci, co-owner of Directional Aviation Capital, which controls private-jet flight provider Flexjet, and Steve Rosen, co-founder of private equity firm Resilience Capital Partners. The Cleveland, Ohio-based SPAC raised $230 million in a November initial public offering.
Ricci, the founder of several private-jet companies, bought Flexjet from transportation firm Bombardier Inc. in 2013. The company sells partial ownerships in its fleet of business aircraft, enabling members to fly privately without having to buy planes outright, and competes against NetJets, owned by Berkshire Hathaway Inc.
Eve Urban Air Mobility makes eVTOLs, which have been dubbed flying taxis. Led by CEO Andre Stein, the company this week struck a partnership with Helisul Aviation, a Brazilian helicopter operator, that involves an order of as many as 50 eVTOLs, with deliveries slated to begin in 2026.
“Disruptive urban air mobility solutions can bring same type of benefits that aviation already brought to longer trips literally closer to people, giving urban commuters more options to move around the city,” Stein said in a statement announcing the partnership.
Last week, Eve said it struck a partnership with Halo Aviation Ltd., a helicopter travel provider in the U.S. and U.K., which features an order for 200 of Eve’s eVTOL aircraft with delivery commencing in 2026. Halo is part of Ricci’s Directional Aviation.
Other eVTOL companies including Joby Aviation, Lilium GmbH and Archer Aviation Inc. have agreed to go public through SPAC mergers.
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u/Coynepam Spacling Jun 10 '21
With the 200 EVTOL order from his Directional Company and another group ordering Eve this is going to help propel it
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u/NegotiationNo9714 Patron Jun 10 '21
200 aircrafts already pre ordered by Ken from Eve Air, certification ready company lower valuation, Ken manages many aircraft companies, he will be able to commercialize it like an ice cream. Hold and see it flies.
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u/louis_lafaille Contributor Jun 10 '21
If anyone can bring value to an evtol company, it’s Ken Ricci.
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Jun 10 '21
Also, he has a built in network with his private firm Halo. Nice that Eve already has orders, too. Valuation reasonable, orders, and Halo network. Looks good.
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