By Tatiana Bautzer and Gabriel Araujo
SAO PAULO, Dec 21 (Reuters) – Brazilian planemaker Embraer SA EMBR3.SA has agreed to combine its electric aircraft subsidiary Eve with Zanite SPAC and list it on NYSE, the companies said on Tuesday.
The transaction values Eve’s equity at $2.9 billion and will include the combination with Zanite Acquisition Corp and an additional investment by a group that includes Embraer, Zanite, financial investors and strategic partners such as Azorra Aviation, BAE Systems, Republic Airways, Rolls-Royce and SkyWest Inc.
After the transactions, Eve, listed on NYSE under the ticker EVEX, will have a $512 million cash position that will be used to develop Eve’s flying taxi. The company already has an order pipeline of more than $5 billion.
Among the customers with pre-orders are lessors, helicopter operators and ride sharing companies.
After announcing Eve’s listing, Embraer said in a separate filing that Florida-based Azorra had ordered 200 electric vertical take-off and landing (eVTOL) aircraft from Eve.
U.S. Republic Airways has placed an order for up to 200 evTOLs, the Brazilian company added, noting it aims to implement an eVTOL network throughout the U.S. Central and East Coast markets.
Skywest Inc SKYW.O, Embraer also said, has ordered 100 electric aircraft from Eve looking to develop a regional chain in the United States.
Embraer will own 80% of Eve after the SPAC combination and additional investment from the group. Eve’s cash position is expected to be enough to fund the flying taxi development through its certification, expected for 2025, Embraer CEO Francisco Gomes Neto told Reuters.
Gomes Neto said in an interview that Eve will probably have multiple production sites to deliver to customers in different continents, but the locations have not yet been chosen. Gomes Neto expects Eve to reach $4.5 billion in revenue by 2030, with around 15% of the global urban air mobility market.
The production phase will probably be funded by debt, said Eve’s co-CEO Jerry DeMuro, former BAE Systems CEO. Eve’s other co-CEO is Andre Stein, an Embraer executive for two decades.
Embraer will provide infrastructure to Eve, including the allocation of engineers to the projects, testing grounds and simulation equipment.
“This will allow us to lower the costs,” DeMuro said in an interview.
(Editing by Jacqueline Wong and Bernadette Baum )
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