Eve UAM to be listed on NYSE, deliver operational eVTOL by 2026

It was confirmed on Dec. 21 that private aviation entrepreneur and Zanite Acquisition Corp. (Beachwood, Ohio, U.S.) co-CEO Kenn Ricci and aerospace company Embraer (São José dos Campos, Brazil) are to produce a fully operational electric vertical takeoff and landing vehicle (eVTOL). The eVTOL, which will be developed by EmbraerX’s independent spin-off company Eve Urban Air Mobility Solutions (Eve UAM, Melbourne, Fla., U.S.), is the result of a definitive business combination agreement between Eve UAM and Zanite, a special purpose acquisition company (SPAC) focused on the aviation sector.

Upon closing of the transaction, Zanite will change its name to Eve Holding, Inc. and will be listed on the New York Stock Exchange (NYSE) under the new ticker symbol, “EVEX” and “EVEXW.” Embraer, through its subsidiary Embraer Aircraft Holding Inc., will remain a majority stockholder with an approximately 80% equity stake in Eve Holding following the closing of the business combination, including its investment in the PIPE.

Eve’s strategic partnership with Embraer is said to be a key competitive advantage. In connection with the transaction, Embraer has contributed its UAM-related assets, employees and IP to Eve. In addition, Embraer has granted Eve a royalty-free license to Embraer’s background IP to be used within the urban air mobility (UAM) market. As a result, Eve has access to thousands of skilled Embraer employees on a flexible, first priority basis and use of Embraer’s global infrastructure on preferred terms, pursuant to the terms of certain services agreements between Embraer and Eve. The strategic alignment with Embraer provides Eve with significant cost and execution advantages relative to other UAM participants.

“We believe that the UAM 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 well positioned to become one of the major players in this segment,” says Francisco Gomes Neto, president and CEO of Embraer. “As a global aerospace company, with a leadership position in multiple segments, we understand that innovation and technology play a strategic role in driving sustainable growth and redefining the future of aviation.”

Created in 2017, Eve is the first company to graduate from EmbraerX. With a singular focus on a potential $760 billion UAM addressable market, Eve has reportedly introduced a comprehensive, practical and capital efficient UAM solution spanning eVTOL design and production, service and support, fleet operations and urban air traffic management. By leveraging the ongoing support and resources of Embraer and the anticipated proceeds from the business combination with Zanite, the parties to the transaction believe that Eve is uniquely positioned to develop, certify and commercialize its UAM solutions on a global scale.

Eve will be led by co-CEOs Jerry DeMuro, who most recently served as CEO of BAE Systems Inc. (Farnborough, U.K.), and Andre Stein, who has led Eve since its inception and served in leadership roles with Embraer for more than two decades. “UAM is a transformational opportunity in the aviation sector. I joined Eve because I believe that there is no company better positioned to capitalize on the potential of this emerging market,” says Jerry DeMuro, co-CEO.

According to Embraer, Eve has formed a powerful network of dozens of highly respected strategic partners spanning the UAM ecosystem, including fleet operators, ride sharing partners, vertiport providers, aircraft lessors, financing partners, renewable energy providers and leaders in the defense and technology sectors. From this partner network, Eve has secured launch orders from 17 customers, via non-binding letters of intent, resulting in a pipeline of 1,735 vehicles valued at approximately $5 billion. Deliveries are expected to start in 2026.

The business combination values Eve at an implied $2.4 billion enterprise value. Upon closing of the transaction, and assuming no redemption by Zanite’s stockholders, Eve will have approximately $512 million in cash, resulting in a total pro forma equity value of approximately $2.9 billion. Cash proceeds raised in the transaction are expected to be used to fund operations, support growth and for general corporate purposes. The proceeds will be funded through a combination of Zanite’s approximately $237 million cash in trust, assuming no redemptions by Zanite’s stockholders, and a $305 million PIPE of common stock at $10.00 per share, comprised of commitments of $175 million from Embraer, $25 million from Zanite’s sponsor and $105 million from a consortium of leading financial and strategic investors including Azorra Aviation, BAE Systems, Banco Bradesco, Falko Regional Aircraft, Republic Airways, Rolls Royce and SkyWest. 

The transaction, which has been unanimously approved by the boards of directors of both Embraer and Zanite, is expected to close in Q2 2022, subject to regulatory and stockholder approvals and other customary closing conditions.