Embraer Confirms Talks To Merge Eve eVTOL Unit with Zanite

 - June 11, 2021, 5:18 AM
Embraer's Eve Urban Air Mobility Solutions is looking to raise funds for its planned eVTOL aircraft through an IPO-merger with Zanite Acquisition. (Image: Embraer)

Embraer’s Eve Urban Air Mobility Solutions subsidiary is negotiating a possible merger with Zanite Acquisition Corp, a special purpose acquisition company that started trading on the Nasdaq market in November, raising an initial $230 million. Late on June 10, in a statement from Antonio Carlos Garcia, the Brazilian aerospace group’s executive vice president of finance and investor relations, Embraer responded to a Bloomberg report earlier in the day that Eve and Zanite are preparing to announce a $2 billion merger.

“The negotiations with Zanite on ongoing,” said the written statement. “The company cannot predict if Eve will reach a definitive agreement or what will be the terms thereof. The company will keep the market informed of subsequent material developments in the context of such negotiations, to the extent imposed by the applicable laws and stock exchange regulations.”

U.S.-based Zanite was launched by business aviation entrepreneur Kenn Ricci, who is principal of Directional Aviation Capital, and Steve Rosen, who is co-CEO with Ricci of Resilience Capital Partners. Directional Aviation includes private aviation service providers OneSky Flight, Flexjet, Sentient Jet, PrivateFly, and FxAir.

On June 1, OneSky Flight announced plans to buy 200 of Embraer’s four-passenger Eve eVTOL aircraft from 2026. Its plan is to operate these in the UK and U.S. markets through its helicopter operating subsidiaries Halo Aviation and Associated Aircraft Group.

Embraer formed Eve Urban Air Mobility as a breakaway subsidiary from its EmbraerX technology incubator. Last year, the company said it was looking to sign up strategic partners to help complete the development of its all-electric, lift-and cruise eVTOL aircraft. Working with other Embraer subsidiaries, such as Atech, and partners including Airservices Australia and energy group EDP, Embraer is focusing on developing the wider UAM ecosystem including air traffic management and ground infrastructure.

The new aircraft is expected to have a range of up to around 60 miles. Embraer said it will be up to 80 percent quieter than current helicopters and with 50 percent lower operating costs.