Embraer unit Eve to go public via merger with SPAC Zanite Acquisition in deal valued at about $2.4 billion

Embraer unit Eve, an urban air mobility business, said Tuesday it is going public via a merger with special-purpose acquisition corporation Zanite Acquisition Corp. in a deal with an implied enterprise value of about $2.4 billion. Once the deal closes, the SPAC will e renamed Eve Holding Inc. and trade on the New York Stock Exchange under the ticker "EVEX." Brazilian aircraft maker Embraer SA /zigman2/quotes/201881360/composite ERJ +1.63% /zigman2/quotes/201576050/delayed BR:EMBR3 -0.47% will retain a roughly 82% stake in the new company. "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 have about $512 million in cash from the SPAC to fund operations and support growth. The sum includes a $305 million private investment in public equity, or PIPE, backed by 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, Bradesco BBI, Falko Regional Aircraft, Republic Airways, Rolls-Royce and SkyWest, Inc. The deal is expected to close in the second quarter of 2022. Eve has an order backlog of about $5.2 billion, including 1,735 vehicle orders via no-binding letters of intent from 17 launch customers, including fixed wing and helicopter operators, aircraft lessors and ride sharing platform partners, the companies said.