Electric aviation and air travel company Surf Air Mobility plans to merge with SPAC Tuscan Holdings II and acquire commuter airlines Southern Airways Corporation, in a deal valuing the combined entity at $1.42 billion.
The deal, expected to close in the second half of the year, will fetch up to $467 million in gross cash proceeds, including committed capital from iHeartMedia, and Partners For Growth, and an equity line from Global Emerging Markets, as well as from THCA’s cash in trust (assuming no stockholder redemptions). The deal is also conditioned on the closing of the acquisition of Southern Airways.
The combined company, comprising Surf Air, Tuscan II and Southern Airways, expects to generate about $100 million revenue in 2022 revenue from all its business units.
Los Angeles-based Surf Air has been involved in a series of acquisitions and partnerships, including Textron, over the past year as it plans to use electrified aircraft across its network.
Surf Air today saiud it has also entered into a third-party agreement with AeroTEC, an aircraft development and integration company and magniX, which devlops electric propulsion systems; AeroTEC to develop proprietary powertrain technology for Surf Air and magniX to supply electric propulsion units for Surf Air’s launch product, a hybrid electric powertrain, initially designed for the Cessna Grand Caravan.
Surf Air Mobility provides a regional air mobility platform with scheduled routes and on demand charter flights operated by third-party Part 135 charter operators. The company intends to accelerate the adoption of green flying and develop proprietary powertrain technology to electrify existing fleets, reducing operating costs and emissions. Read more.
