UK-based clean aircraft developer Vertical Aerospace has agreed to a reverse takeover with special purpose acquisition company Broadstone Acquisition Corp that will be backed by several corporate investors.
Air carrier American Airlines, aircraft leasing service Avolon, diversified technology producer Honeywell, aerospace manufacturer Rolls-Royce, industrial group Standard Industries’ 40 North vehicle and software provider Microsoft’s M12 unit are among the investors in a private placement supporting the deal.
The merged business will be valued at $2.2bn and will take up the listing on the New York Stock secured by Exchange Broadstone through a $300m initial public offering in September 2020.
Vertical Aerospace is working on a five-seater electric vertical take-off and landing (eVTOL) aircraft called the VA-X4 with a projected top speed of 202 mph that is designed for urban use. It has received pre-launch orders from American Airlines and Avolon for up to 750 vehicles.
The company has not disclosed details of its earlier funding but named M12, 40 North and e-commerce holding company Rocket Internet as investors.
Microsoft UK’s chief executive, Clare Barclay, said: “M12’s investment in Vertical Aerospace demonstrates the market opportunity in the growing demand for urban transportation, but historically, expanding mobility has not been environmentally sustainable.
“Automation and Industry 4.0 is a clear way forward to realise more operational efficiencies and mitigate transportation congestion and pollution.”
Avolon CEO Dómhnal Slattery added: “Avolon is proud to be a launch customer for the VA-X4 aircraft, demonstrating our commitment to a net zero carbon economy and to driving innovation in the global aviation sector.
“Our order with Vertical will also accelerate the inevitable commercial roll-out of zero emissions aircraft. Before the end of this decade, we expect zero emission urban air mobility, enabled by eVTOLs, to play an increasingly important role in the global commercial aviation market.”
Image courtesy of Vertical Aerospace Group Ltd.
