German aviation firm Lilium has agreed to go public through a merger with special purpose acquisition company Qell Acquisition, according to CNBC.

  • The transaction implies a pro-forma enterprise value of $2.4 billion and a pro-forma equity value of $3.3 billion for the combined company which will trade on the Nasdaq exchange under LILM.
  • After the merger, the company is expected to generate an estimated $830 million from the deal. This includes $450 million from a fully committed common stock private investment in public equity (PIPE), and $380 million cash held in trust.
  • Qell was founded by former General Motors executive Barry Engle, while PIPE investors include Baillie Gifford, BlackRock, Tencent, and Ferrovial.
  • The deal is expected to close in the second quarter, and the latest deal for the urban air mobility industry following similar agreements of Archer Aviation, and Joby Aviation.
  • Lilium Chief Executive Officer and co-founder Daniel Wiegand said the funding will provide capital for the company to reach its targeted commercial launch in the U.S. and Europe starting 2024. The company is developing a seven-seat, electric vertical takeoff and landing aircraft.
  • The firm plans to primarily focus on intercity flights rather than shorter in-city trips which other companies are also eyeing. Florida and Germany were identified as target launch markets.