Flexjet will go public through a merger with special purpose acquisition company (SPAC) Horizon Acquisition in a deal that values Flexjet at $3.1bn. The deal is expected to close by the Q2 of 2023, FlexJet will be listed on the New York Stock Exchange (NYSE) under the ticker symbol "FXJ.”
The companies said the deal is backstopped with a common equity capital commitment of up to $300 million from Eldridge Industries and Horizon’s sponsor. Transaction proceeds are expected to fund Flexjet’s fleet, program, and geographic expansion, as well as significant infrastructure expansion, including maintenance support facilities and private terminals
Flexjet Chairman Kenneth Ricci said: “Having capital and currency will position us to expand market share at an accelerated pace in an opportunistic environment. We will parlay our existing profitability and use that as a launch pad to accelerate our growth into the next chapter. We place a tremendous focus on capital deployment and return on invested capital, and we have an extremely talented management team that has built this company in a very capital-efficient way. We have the infrastructure, we have tremendous depth and commitment from our employee group, and we have a vision.”
Todd Boehly, CEO, CFO and Chairman of Horizon said: “Flexjet’s global presence, aircraft network, and proprietary technology have established the Company as a category leader in private aviation. Eldridge has a long-tenured partnership with this world-class management team and believes that the scale and breadth of Flexjet’s solutions will enable it to continue to capture share in a large and accelerating market.
Flexjet is a subscription-based private aviation company and boasts of providing a platform for fractional jet ownership; private jet leasing; jet cards; on-demand charter and full ownership to a highly loyal and growing clientele. Flexjet also claims of having a world-class management team with 40+ years of industry experience and a proven track record for driving innovation and growth through focused financial discipline and capital stewardship.
“I’ve known Kenn and the team for nearly a decade, and their ability to profitably grow Flexjet to what is estimated to be over $2 billion in revenue through an unrivaled product offering and desirable subscription-based business model sets the team apart. We believe this transaction provides Flexjet with ample capital to execute Flexjet’s long-term vision, the ability to continue to serve its loyal customer base, and positions the Company for success in the public markets,” concluded Todd.