Lilium, a Germany-headquartered aircraft developer backed by internet group Tencent, agreed today to undertake a reverse takeover with special purpose acquisition company Qell Acquisition Corp.
The transaction will give the merged company a $3.3 billion pro forma equity valuation. It will take the spot on the Nasdaq Capital Market acquired by Qell in a $330m initial public offering in October 2020.
Tencent, data analytics service provider Palantir and construction firm Ferrovial are joining Baillie Gifford, LGT and its Lightrock subsidiary, Atomico, FII Institute, funds and accounts managed by BlackRock and private funds affiliated with Pimco to supply $450m in financing to support the deal.
Spun out of Technical University of Munich’s commercialisation arm, Unternehmertum, in 2015, Lilium is working on five and seven-seater electric vertical take-off and landing jets which are being developed for use in an urban airborne taxi and logistics service.
The proceeds from the reverse merger will support the completion of Lilium’s German manufacturing facilities, the launch of production jets and certification activities for the technology, as it prepares for a commercial launch expected to take place in 2024.
The company closed its last round at $275m in June 2020, raising the cash from Tencent, Baillie Gifford, LGT, Atomico and Freigeist Capital at a reported valuation exceeding $1bn.
Lilium had already received $90m in a 2017 series B round featuring Tencent, LGT, Atomico and Obvious Ventures, following $12m in series A funding from Atomico the previous year and an undisclosed amount of seed financing from Freigeist Capital.
Photo courtesy of Lilium GmbH.
