Embraer’s Eve in $2 Billion Merger Talks With Zanite SPAC
Brazil’s Embraer SA is in talks to merge Eve Urban Air Mobility, its electric vehicle takeoff and landing unit, with Zanite Acquisition Corp.
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.
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.
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.
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.