Private aviation company Flexjet and Horizon Acquisition II announced today a definitive merger agreement that values the target at a pro forma enterprise value of $3.1 billion. If the deal is approved, Flexjet is expected to list on the NYSE under the ticker symbol FXJ.
Flexjet is engaged in the private aviation sector with a range of market offerings that reach private jet users through various branded storefronts that target specific private flying needs. These storefronts include: Flexjet, which focuses on fractional jet ownership and leasing; Sentient Jet, which focuses on jet cards; FXAIR and PrivateFly, which offer on-demand charter programs; as well as Sirio, which focuses on full aircraft ownership.
The transaction is backstopped with a common equity capital commitment of up to $300 million from Eldridge Industries (an affiliate of Horizon’s sponsor) and Horizon’s sponsor, which consists of $155 million in non-redemption agreements and an up to $145 million redemption back-stop.
Upon closing and assuming the full redemption back-stop is utilized, existing Flexjet shareholders (which includes affiliates of Eldridge Industries who are current investors in Flexjet) are expected to own 89% of the combined company. In the event there are fewer redemptions from Horizon’s trust account, the ownership percentage would be reduced by existing Horizon public shareholders.
Horizon II in August filed a preliminary proxy proposing a merger deadline extension that would move the goalposts from Oct. 22 this year to Sept. 30, 2023.
The SPAC, led by Los Angeles Dodger co-owner Todd Boehly, ended discussions last year with Sportradar, a sports data provider.
Horizon II raised $525 million in a 2020 IPO. Read more.
