flyExclusive Reaches Definitive Agreement to Acquire Jet.AI Aviation Business in an All-Stock Transaction
flyExclusive (NYSE: FLYX) has entered a definitive agreement to acquire Jet.AI's aviation business in an all-stock transaction. The deal involves Jet.AI spinning off its aviation business into a new company (SpinCo), which will then be acquired by flyExclusive. The transaction is expected to provide flyExclusive with additional growth capital and enhanced shareholder liquidity.
The purchase price will be determined based on Jet.AI's Net Cash multiplied by a premium percentage of 115-120%, equivalent to $12-22 million. Jet.AI shareholders will retain their existing stock while receiving new flyExclusive Class A common shares. The deal requires Jet.AI to maintain at least $12 million in Net Cash as a closing condition, supported by a $50 million non-binding term sheet with Hexstone Capital LP.
The transaction is expected to close in Q2 2025, subject to financing, regulatory review, and shareholder approval. Both companies operate similar aircraft from Textron Aviation and HondaJet, making this combination strategically aligned with flyExclusive's 2025 growth plans.
flyExclusive (NYSE: FLYX) ha stipulato un accordo definitivo per acquisire l'attività aeronautica di Jet.AI in un'operazione interamente in azioni. L'accordo prevede che Jet.AI scinda la propria attività aeronautica in una nuova società (SpinCo), che sarà poi acquisita da flyExclusive. Si prevede che la transazione fornisca a flyExclusive ulteriore capitale per la crescita e una maggiore liquidità per gli azionisti.
Il prezzo di acquisto sarà determinato sulla base del Cash Netto di Jet.AI moltiplicato per una percentuale di premio del 115-120%, equivalente a 12-22 milioni di dollari. Gli azionisti di Jet.AI manterranno le loro azioni esistenti ricevendo nel contempo nuove azioni ordinarie di Classe A di flyExclusive. L'accordo richiede che Jet.AI mantenga almeno 12 milioni di dollari in Cash Netto come condizione di chiusura, supportato da un term sheet non vincolante da 50 milioni di dollari con Hexstone Capital LP.
Si prevede che la transazione si chiuda nel secondo trimestre del 2025, soggetta a finanziamento, revisione regolamentare e approvazione degli azionisti. Entrambe le aziende operano aerei simili di Textron Aviation e HondaJet, rendendo questa combinazione strategicamente allineata con i piani di crescita di flyExclusive per il 2025.
flyExclusive (NYSE: FLYX) ha firmado un acuerdo definitivo para adquirir el negocio de aviación de Jet.AI en una transacción completamente en acciones. El acuerdo implica que Jet.AI escinda su negocio de aviación en una nueva compañía (SpinCo), que luego será adquirida por flyExclusive. Se espera que la transacción proporcione a flyExclusive capital adicional para el crecimiento y una mayor liquidez para los accionistas.
El precio de compra se determinará en función del Efectivo Neto de Jet.AI multiplicado por un porcentaje de prima del 115-120%, equivalente a 12-22 millones de dólares. Los accionistas de Jet.AI mantendrán sus acciones existentes mientras reciben nuevas acciones ordinarias de Clase A de flyExclusive. El acuerdo requiere que Jet.AI mantenga al menos 12 millones de dólares en Efectivo Neto como condición de cierre, respaldado por un acuerdo de términos no vinculante de 50 millones de dólares con Hexstone Capital LP.
Se espera que la transacción se cierre en el segundo trimestre de 2025, sujeto a financiamiento, revisión regulatoria y aprobación de los accionistas. Ambas empresas operan aeronaves similares de Textron Aviation y HondaJet, haciendo que esta combinación esté alineada estratégicamente con los planes de crecimiento de flyExclusive para 2025.
flyExclusive (NYSE: FLYX)는 Jet.AI의 항공 사업을 주식 거래로 인수하기 위한 최종 계약을 체결했습니다. 이 거래는 Jet.AI가 항공 사업을 새로운 회사(SpinCo)로 분할하고, 이후 flyExclusive가 이를 인수하는 구조입니다. 이 거래는 flyExclusive에게 추가적인 성장 자본과 주주 유동성을 제공할 것으로 예상됩니다.
구매 가격은 Jet.AI의 순 현금을 115-120%의 프리미엄 비율로 곱한 금액으로 결정되며, 이는 1,200만에서 2,200만 달러에 해당합니다. Jet.AI의 주주들은 기존 주식을 유지하며 flyExclusive의 새로운 클래스 A 보통주를 받게 됩니다. 이 거래는 Jet.AI가 마감 조건으로 최소 1,200만 달러의 순 현금을 유지해야 하며, 이는 Hexstone Capital LP와의 5천만 달러 비구속 조건서에 의해 지원됩니다.
이 거래는 2025년 2분기에 마감될 것으로 예상되며, 자금 조달, 규제 검토 및 주주 승인을 조건으로 합니다. 두 회사는 Textron Aviation과 HondaJet의 유사한 항공기를 운영하고 있어, 이 조합은 flyExclusive의 2025년 성장 계획과 전략적으로 일치합니다.
flyExclusive (NYSE: FLYX) a conclu un accord définitif pour acquérir l'activité aéronautique de Jet.AI dans le cadre d'une transaction entièrement en actions. L'accord implique que Jet.AI scinde son activité aéronautique en une nouvelle société (SpinCo), qui sera ensuite acquise par flyExclusive. La transaction devrait fournir à flyExclusive un capital de croissance supplémentaire et une liquidité accrue pour les actionnaires.
Le prix d'achat sera déterminé en fonction de la Trésorerie Nette de Jet.AI multipliée par un pourcentage de prime de 115-120%, équivalent à 12-22 millions de dollars. Les actionnaires de Jet.AI conserveront leurs actions existantes tout en recevant de nouvelles actions ordinaires de Classe A de flyExclusive. L'accord exige que Jet.AI maintienne au moins 12 millions de dollars en Trésorerie Nette comme condition de clôture, soutenue par une lettre d'intention non contraignante de 50 millions de dollars avec Hexstone Capital LP.
La transaction devrait être finalisée au deuxième trimestre 2025, sous réserve de financement, d'examen réglementaire et d'approbation des actionnaires. Les deux entreprises exploitent des avions similaires de Textron Aviation et HondaJet, rendant cette combinaison stratégiquement alignée avec les plans de croissance de flyExclusive pour 2025.
flyExclusive (NYSE: FLYX) hat eine endgültige Vereinbarung zur Übernahme des Luftfahrtgeschäfts von Jet.AI in einer rein aktienbasierten Transaktion getroffen. Der Deal sieht vor, dass Jet.AI sein Luftfahrtgeschäft in ein neues Unternehmen (SpinCo) ausgliedert, das dann von flyExclusive übernommen wird. Die Transaktion wird voraussichtlich flyExclusive zusätzliches Wachstumskapital und eine verbesserte Liquidität für die Aktionäre bieten.
Der Kaufpreis wird auf Basis von Jet.AIs Netto-Cash multipliziert mit einem Aufschlag von 115-120% bestimmt, was etwa 12-22 Millionen Dollar entspricht. Die Aktionäre von Jet.AI behalten ihre bestehenden Aktien und erhalten zusätzlich neue Stammaktien der Klasse A von flyExclusive. Der Deal erfordert, dass Jet.AI mindestens 12 Millionen Dollar Netto-Cash als Abschlussbedingung aufrechterhält, unterstützt durch ein nicht bindendes Term Sheet über 50 Millionen Dollar mit Hexstone Capital LP.
Die Transaktion wird voraussichtlich im zweiten Quartal 2025 abgeschlossen, vorbehaltlich der Finanzierung, der regulatorischen Prüfung und der Genehmigung der Aktionäre. Beide Unternehmen betreiben ähnliche Flugzeuge von Textron Aviation und HondaJet, was diese Kombination strategisch mit den Wachstumsplänen von flyExclusive für 2025 in Einklang bringt.
- Strategic acquisition aligns with flyExclusive's 2025 growth plans
- Additional growth capital and enhanced shareholder liquidity
- Operational synergies due to common aircraft fleet types
- Potential market share expansion opportunity
- All-stock transaction structure may lead to shareholder dilution
- Transaction completion dependent on multiple conditions including $12M minimum Net Cash requirement
- Closing not guaranteed until Q2 2025
Insights
This strategic acquisition marks a significant consolidation move in the private aviation sector, with flyExclusive, the fifth-largest operator by hours flown, strengthening its market position through a carefully structured all-stock transaction. The deal's valuation range of
The transaction's structure is particularly noteworthy for several reasons:
- The common fleet composition (Textron Aviation and HondaJet aircraft) between both companies will enable immediate operational integration and cost efficiencies
- The all-stock nature of the deal preserves flyExclusive's cash position while providing Jet.AI shareholders with continued exposure to the aviation sector through their new flyExclusive shares
- The
$50 million financing arrangement with Hexstone Capital provides important transaction certainty and working capital flexibility
The timing aligns with broader industry consolidation trends, as private aviation operators seek scale advantages and operational efficiencies to maintain competitiveness. For flyExclusive, this acquisition provides both fleet expansion opportunities and an enhanced shareholder base, potentially improving stock liquidity and market visibility. The deal's structure also demonstrates sophisticated financial engineering, protecting both parties' interests while facilitating a clean separation of Jet.AI's aviation and AI technology businesses.
Proposed transaction provides flyExclusive with additional growth capital and will add trading liquidity through incremental equity ownership
Business combination transforms Jet.AI into a pure-play AI solutions company
flyExclusive will acquire the business in conjunction with Jet.AI’s focus on being a pure-play AI solutions company. The transaction will occur following Jet.AI’s spin of the business into a new company (“SpinCo”), which would then be acquired by flyExclusive (collectively, the “Business Combination”). Jet.AI shareholders will retain their Jet.AI stock and receive new Class A common shares in flyExclusive as part of the transaction. The Business Combination is contingent upon the closing conditions outlined in the agreement.
This strategic Business Combination is a natural fit for flyExclusive to acquire Jet.AI’s aviation business, as both companies operate planes from Textron Aviation and HondaJet and the acquired assets will help support flyExclusive’s 2025 growth plans. As one of the largest and most well-established companies in private aviation, flyExclusive brings a robust fleet and leading operational expertise. This deal is mutually beneficial as it is expected to provide flyExclusive with additional growth capital and enhanced shareholder liquidity and to allow Jet.AI to focus as a pure-play AI solutions company.
flyExclusive’s Founder and Chief Executive Officer, Jim Segrave noted “The proposed transaction with Jet.AI is the latest example of the value flyExclusive’s vertically integrated private aviation platform provides to industry participants. The transaction benefits flyExclusive investors and will augment our continued growth and market share expansion as an industry leader. Additional growth capital and new shareholders provide an early tailwind in 2025 as we onboard additional high-performance aircraft and serve strong demand for our differentiated customer service.’
"This Business Combination with flyExclusive offers our shareholders the opportunity to benefit from growth in both private aviation and AI," said Jet.AI Founder and Executive Chairman Mike Winston. "flyExclusive, the fifth-largest operator in the industry by hours flown, is a natural fit, with clear synergies given the common aircraft we operate.”
Transaction Details
The Business Combination is structured as an all-stock transaction, spinning off Jet.AI’s charter business assets into the SpinCo, which in turn will be acquired by flyExclusive. Key details of the transaction include:
- Ownership: The Business Combination consideration will be in the form of a number of fully paid and non-assessable shares of Class A common stock of flyExclusive equal to the quotient of the purchase price, divided by the average volume-weighted average price of flyExclusive’s stock for the thirty trading days immediately prior to the effective date. Jet.AI shareholders will retain their Jet.AI stock while receiving new Class A common shares in flyExclusive to account for the portion of the aviation business being spun-off.
-
Purchase Price: The purchase price shall be determined based on Jet.AI’s Net Cash multiplied by the Applicable Premium Percentage. Net Cash of at least
$12 million $50 million $16.5 million 115% and120% equivalent to a dollar value today contemplated in the range of$12m m to$22m m, depending on the Net Cash value at the close of transaction.
- Timing: The transaction is expected to close in the second quarter of 2025, subject to various closing conditions, including but not limited to Jet.AI financing, regulatory review, and shareholder approval.
About flyExclusive
flyExclusive is a vertically integrated, FAA-certificated air carrier providing private jet experiences by offering customers a choice of on-demand charter, Jet Club, and fractional ownership services to destinations across the globe. flyExclusive has one of the world’s largest fleets of Cessna Citation aircraft, and it operates a combined total of approximately 100 jets, ranging from light to large cabin sizes. The company manages all aspects of the customer experience, ensuring that every flight is on a modern, comfortable, and safe aircraft. flyExclusive’s in-house repair station, aircraft paint, cabin interior renovation, and avionics installation capabilities, are all provided from its campus headquarters in
About Jet.AI
Jet.AI currently operates in two segments, Software and Aviation, respectively. The Software segment features the B2C CharterGPT app, the Ava agentic booking AI, and the B2B Jet.AI Operator platform. The CharterGPT app and Ava both use natural language processing and machine learning to improve the private jet booking experience. The Jet.AI operator platform offers a suite of stand-alone software products to enable FAA Part 135 charter providers to add revenue, maximize efficiency, and reduce environmental impact. The Aviation segment features jet aircraft fractions, jet cards, on-fleet charter, management, and buyer’s brokerage. Jet.AI is an official partner of the Las Vegas Golden Knights, 2023 NHL Stanley Cup® champions. The Company was founded in 2018 and is based in
Additional Information and Where to Find It
In connection with the Business Combination, flyExclusive and Jet.AI intend to file relevant materials with the SEC, including a registration statement on Form S-4, which will include a proxy statement/prospectus. After the registration statement is declared effective by the SEC, the definitive proxy statement/prospectus and other relevant documents will be mailed to the shareholders of Jet.AI as of the record date established for voting on the Business Combination and will contain important information about the Business Combination and related matters. Shareholders of Jet.AI and other interested persons are advised to read, when available, these materials (including any amendments or supplements thereto) and any other relevant documents in connection with Jet.AI’s solicitation of proxies for the meeting of shareholders to be held to approve, among other things, the proposed Business Combination because they will contain important information about Jet.AI, flyExclusive and the Business Combination. Shareholders will also be able to obtain copies of the preliminary proxy statement/prospectus, the definitive proxy statement/prospectus and other relevant materials in connection with the transaction without charge, once available, at the SEC’s website at www.sec.gov or by directing a request to: Jet.AI Inc., 10845 Griffith Peak Drive, Suite 200,
Participants in the Solicitation
Jet.AI and its respective directors and executive officers may be deemed participants in the solicitation of proxies from Jet.AI’s shareholders in connection with the Business Combination. Jet.AI’s shareholders and other interested persons may obtain, without charge, more detailed information regarding the directors and officers of Jet.AI as reflected in the annual report on Form 10-K for the period ended December 31, 2023, filed with the SEC on April 1, 2024, as amended by Form 10-K/A filed on April 29, 2024. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of proxies to Jet.AI’s shareholders in connection with the Business Combination will be set forth in the proxy statement/prospectus for the Business Combination when available. Additional information regarding the interests of participants in the solicitation of proxies in connection with the Business Combination will be included in the proxy statement/prospectus that flyExclusive and Jet.AI intend to file with the SEC. You may obtain free copies of these documents as described in the preceding paragraph.
flyExclusive and its directors and executive officers may also be deemed to be participants in the solicitation of proxies from the shareholders of Jet.AI in connection with the Business Combination. A list of the names of such directors and executive officers and information regarding their interests in the Business Combination will be included in the proxy statement/prospectus for the Business Combination when available.
No Solicitation or Offer
This communication is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy any securities or the solicitation of any vote in any jurisdiction pursuant to the Business Combination or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, and otherwise in accordance with applicable law.
Forward-Looking Statements
This press release contains certain statements that may be deemed to be “forward-looking statements” within the meaning of the federal securities laws, including the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, including with respect to Business Combination and its potential benefits. Statements that are not historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements relate to future events or our future performance or future financial condition. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about our companies, our industry, our beliefs and our assumptions. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions or the negative of these terms or other similar expressions, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties that could cause the actual results to differ materially from the expected results. As a result, caution must be exercised in relying on forward-looking statements, which speak only as of the date they were made. Factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements include the risk that the Business Combination might not be completed in a timely manner or at all, which could adversely affect the price of Jet.AI’s common stock or flyExclusive’s securities; the failure to satisfy the conditions to the consummation of the Business Combination, including required Jet.AI financing, board and shareholder approvals; potential dilution to Jet.AI shareholders from any financing; the occurrence of any event, change or other circumstance that could give rise to the termination of the definitive agreement for the Business Combination; the effect of the announcement or pendency of the transaction on Jet.AI’s or flyExclusive’s business generally; risks that the Business Combination disrupts current plans or operations of Jet.AI or flyExclusive; the outcome of any legal proceedings that may be instituted against Jet.AI or flyExclusive related to the Business Combination; the ability to realize any of the benefits anticipated in the Business Combination; risks relating to agreements with third parties; the companies’ ability to raise funding in the future, as needed, and the terms of such funding, including potential dilution caused thereby; the companies’ ability to maintain the listing of its securities on a national securities exchange; and those risks that can be found in the companies’ most recent Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Readers are cautioned not to put undue reliance on forward-looking statements, and Jet.AI assumes no obligation and does not intend to update or revise these forward-looking statements, whether because of new information, future events, or otherwise, except as provided by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250214042816/en/
flyExclusive
Media: Jillian Wilson, Marketing Specialist
media@flyexclusive.com
Investor Relations: Sloan Bohlen, Solebury Strategic Communications
investors@flyexclusive.com
Jet.AI Inc.
Gateway Group, Inc.
949-574-3860
Jet.AI@gateway-grp.com
Source: flyExclusive Inc.
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