Drone startup Elroy Air nearing $800 million SPAC deal, Bloomberg News reports
Drone startup Elroy Air nearing $800 million SPAC deal, Bloomberg News reports June 26 (Reuters) - Cargo drone startup Elroy Air is in advanced talks to go public through a merger with blank-check vehicle Columbus Circle Capital Corp. II CMII.O, Bloomberg News reported on Friday, citing people familiar with the matter.
The deal would create a company with an enterprise value of about $1 billion.
Here are some more details:
The deal values Elroy Air at about $800 million on a pre-money basis and includes a private investment in public equity (PIPE) of $165 million, the report said.
Inflection Point, a veteran special purpose acquisition company (SPAC), is anchoring the PIPE, Bloomberg said.
Elroy Air and Columbus Circle Capital did not immediately respond to requests for comment outside regular business hours.
Elroy Air was started in 2016 and raised $40 million in 2021 from investors including Lockheed Martin's LMT.N venture capital arm, as per its website.
The company has facilities in Byron, California, and is backed by premier venture capital firms including Diamondstream Partners, Catapult Ventures, among others.
(Reporting by Abu Sultan in Bengaluru; Editing by Janane Venkatraman)
((Abu.Sultan@thomsonreuters.com;))
Recent news on Inflection Point Acquisition VII
See all newsBrief: Elroy Air Announces Upsizing Of Pipe Investments To $175 Million With Participation From Lockheed Martin Ventures
Brief: Columbus Circle Capital II Says Elroy Air Awarded Up To $46 Million US Army Contract
Brief: Elroy Air Awarded $46 million U.S. Army Contract
Columbus Circle Capital Corp II climbs on Elroy Air take-public deal
Drone startup Elroy Air to list on Nasdaq via $1 billion SPAC deal (updated)