Lilium plans to merge with the SPAC (special purpose acquisition company) Qell Acquisition before the middle of the year. This process, often referred to as a backdoor to going public, eliminates the processes typically associated with an initial public offering (IPO). Instead, a sponsor establishes the SPAC, invests in it, and assumes the entrepreneurial leadership of the shell company. In Qell Acquisition's case, this sponsor is Barry Engle, former President of General Motors North America. Once a SPAC has raised sufficient funds through its own IPO, it acquires one or more privately held companies, making them publicly tradable.
Following the merger of Lilium with Qell, the new company—which will then operate under the name Lilium—is expected to achieve a valuation of approximately $3.3 billion (€2.8 billion). The Munich-based company is expected to receive $830 million (€707 million) in new capital, which the startup plans to invest in its plan to launch commercial operations in 2024.
“The potential of electrifying air travel is enormous”
Barry Engle explained:
"Qell was looking for an exceptional and ambitious technology company with significant growth potential—and we found it in Lilium. I've spent my career in mobility and witnessed the electrification of the automotive industry. The market and societal potential of electrifying air travel is enormous. I and the entire Qell team are excited about the impact Lilium can have and the role we can play."
Only last year, Lilium secured in a financing round of 240 million dollars fresh capital from the Chinese internet group Tencent and existing investors Atomico, Freigeist and LGT. Later, the Scottish investment management company Baillie Gifford with 35 million dollars of financing. The startup had raised a total of over $340 million in capital and exceeded the billion-dollar valuation.
The Munich-based startup is currently developing several electric flying taxis that take off and land vertically. In addition to the already well-known five-seater, Lilium recently announced a seven-seater aircraft, which is more economically viable and will therefore be the first model to go into series production. The startup is also planning a regional flight service in several regions around the world. Lilium has already announced two test networks in which the startup intends to test its concept: One will transport passengers between the largest cities in the US state of Florida. The other will connect ten cities in the Ruhr region with each other and with Düsseldorf and Cologne airports. The plan also includes connecting the more distant cities of Aachen, Bielefeld, Münster, and Siegen to the test network.
