Flexjet Plans SPAC IPO Valued at $3.1 Billion

The deal to take Flexjet public through a SPAC IPO is valued at $3.1 billion, which the company says is nearly 11 times the $288 million adjusted earnings expected for 2022.

Michael Wildes

Wednesday, October 12, 2022 at 02:19 PM ET

Verified

The deal to take Flexjet public through a SPAC IPO is valued at $3.1 billion, which the company says is nearly 11 times the $288 million adjusted earnings expected for 2022. [Courtesy: Flexjet]

Key Takeaways:

Flexjet, a fractional and on-demand private aviation operator, is going public through a $3.1 billion merger with SPAC Horizon Acquisition Corporation II, expected to list on the NYSE as "FXJ" in Q2 2023.
The company plans to utilize the proceeds to accelerate growth, expand its fleet, and enhance its operational footprint, capitalizing on current profitability and an expanding private aviation market.
Flexjet highlights its significant recent growth, a profitable subscription-based business model with high customer retention (97%), diverse service offerings, and successful pilot attraction and retention strategies.

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Fractional and on-demand operator Flexjet is going public by merging with Horizon Acquisition Corporation II (NYSE: HZON), a special purpose acquisition company, or SPAC. When the deal closes—as expected in the second quarter of 2023—Flexjet will be listed on the NYSE under the ticker symbol “FXJ.”

The deal is valued at $3.1 billion, which the company says is nearly 11 times (10.8X) than the $288 million adjusted earnings expected for 2022. When the deal closes, the Ohio-based company said it would use the proceeds to continue growing its fleet and operational footprint, which includes MRO facilities and a private terminal.