Vertical ‘ruling nothing out’ in search for new strategic partner
UK eVTOL developer reviewing alternatives as it looks to next phase of development.
Vertical Aerospace has provided more detail on its latest fund-raising push following the announcement that it had begun a “review of strategic alternatives” with investment bank Jefferies acting as its financial advisor for the work.
UK-headquartered Vertical says the review will consider “potential strategic and financial partnerships to advance the next stage of development”.
Although the company announced that it had secured $850 million of funding earlier this year – around $750 million remains outstanding – Vertical has always maintained more would be needed to bankroll the industrialisation of its Valo electric vertical take-off and landing (eVTOL) aircraft.
“The financing package announced in March was designed to provide immediate working capital and give us flexible access to additional capital as we progress through certification,” says chief executive Stuart Simpson.
“From the outset, our plan has been to maintain flexibility across a range of sources, including strategic capital, government support, our remaining [finance] facilities and the capital markets. This review is about determining the right combination for the next phase.”
Vertical says it is “considering a range of potential strategic and financial partners” and is not ruling anything out – including a merger with another developer – at this point.
“We are not pre-judging the process or narrowing it to a particular type of partner at this stage. The focus is on identifying the right path for Vertical,” says Simpson.
Others in the space have already secured large-scale financial and industrial agreements with companies outside the industry, with eVTOL rivals Archer Aviation and Joby Aviation partnered with automotive firms Stellantis and Toyota, respectively.
Vertical says it launched the review on 24 September – in parallel with the official opening of its initial production site at Kemble airfield in the UK – due to the progress made by the business over the past 12 months, which has seen several “big de-risking moments”, says Simpson.
“We have demonstrated the aircraft’s core technology through piloted transition flight, strengthened our leadership, including appointing new chair Fabrice Bregier, and are moving from development into certification, industrialisation and commercial service entry,” he says.
“That progress has generated growing external interest, so we believe this is the right time to explore the partnerships and options that could benefit Vertical in its next phase.”
And, Simpson insists, the review is not driven by a funding shortfall, noting that it recently “secured approximately $100 million in new financing” – partly drawn from the $850 million facility disclosed in March – giving it a cash runway into the third quarter of 2027.
“The review is about assessing the options that can best support Vertical through its next phase of development,” he says.
Vertical has not set a timetable for the review and warns that “there is no assurance” that any transaction or strategic change will result from the process.
The post Vertical ‘ruling nothing out’ in search for new strategic partner first appeared on FlightGlobal.
Source: www.flightglobal.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.