Vertical Aerospace to Float on NYSE After a $2.2 Billion SPAC Merger, American Airlines, Rolls-Royce and Microsoft's VC Fund All Invest and 1,000 Pre-Orders Announced

Vertical Aerospace Group Ltd. said it plans to go public through a merger with a special acquisition purpose company (SPAC) Broadstone Acquisition Corp. (NYSE: BSN). The transaction is expected to give Vertical Aerospace a Pro-forma valuation of roughly $2.2 billion.

Founded in 2016 by tech entrepreneur Stephen Fitzpatrick, Vertical is a leading British engineering and aeronautical company that develops a Vertical Take-Off and Landing (eVTOL) aircraft.

Vertical also announced American Airlines, Avolon, Honeywell and Rolls-Royce will be participating in the PIPE, with Microsoft's M12, 40 North, and Rocket Internet SE also investing in the company.

American Airlines, Virgin Atlantic, and Avolon have collectively pre-ordered up to 1,000 aircraft, offering a direct route to market and an opportunity to collaborate on key workstreams.

American Airlines and Vertical expect to work together in the U.S. on passenger operations and infrastructure development, while in the U.K., Vertical will be collaborating with Virgin Atlantic to launch a joint venture of a Virgin Atlantic-branded short-haul eVTOL network.

"This is the most exciting time in aviation for almost a century; electrification will transform flying in the 21st century in the same way the jet engine did 70 years ago,” said Fitzpatrick, founder, and CEO of Vertical.

“Today's announcement brings together some of the largest and most respected technology and aeronautical businesses in the world and together we can achieve our aim of making the VA-X4 the first zero-carbon aircraft that most people will fly on. The United Kingdom is already a global leader in aerospace innovation and we believe Vertical Aerospace will be the British engineering champion to drive the aviation industry forward."

The deal is expected to close in the second half of 2021, after which it will be listed on the New York Stock Exchange under the ticker symbol “EVTL”.

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