Private jet company Flexjet has announced a merger with special purpose acquisition company (SPAC) Horizon Acquisition Corp. II in a transaction that will value the combined entity at $3.1 billion, including debt.
Flexjet offers fractional ownership and leasing of private jets on a subscription basis to high-net-worth individuals and Fortune 500 companies through approximately 10,000 committed contracts. It has a multi-decade track record of recurring profitable growth with projected estimated 2022 revenue of $2.3 billion and estimated 2022 Adjusted Management EBITDA of $288 million.
Flexjet’s customers are highly loyal, as demonstrated by a 97% retention rate and long-tenured relationships. Over 35% of Flexjet’s fractional customers have been with the company for more than 10 years, and 55% have been with the company for more than five years.
Flexjet delivers unrivaled travel experiences with its fleet of more than 250 aircraft and helicopters and a global aviation infrastructure network. For over 25 years, the company has set the standard in private aviation with exceptional service and award-winning safety programs, providing its loyal and growing customer base with precise, efficient, and personalized experiences on every trip.
The deal, which is expected to close in the second quarter of 2023, would expand Flexjet’s fleet, its program, and the geographical reach of the new company. It would also fund the improvement of maintenance facilities and private terminals.
Horizon is owned by Todd Boehly, an owner of Chelsea Football Club and founder of Greenwich, CT-based Eldridge Industries, which invests in SPACs. In 2020, Horizon raised $500 million through an IPO. Later that year, it offered to merge with Swiss sports gambling data company Sportradar Group AG, which chose instead to go public via the traditional route a year later at an $8 billion valuation.
Since 2020, the SPAC market has declined, facing poor financial performance and tightening SEC regulation. Some SPAC investors have even announced they will return money to shareholders after failing to find suitable merger targets.