flyExclusive Inc. (NYSE American: FLYX), a Kinston, NC-based provider of jet charter experiences, acquired Jet.AI Inc. (NASDAQ: JTAI), a Las Vegas, NV-based private aviation and artificial intelligence company.
With the acquisition, flyExclusive will expand its 2025 growth plans.
Founded by Mike Winston 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, which 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.
The company also has an office in San Francisco, CA.
Led by Founder and CEO, Jim Segrave, 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. It has fleets of Cessna Citation aircraft, and it operates a combined total of approximately 100 jets, ranging from light to large cabin sizes.
The purchase price shall be determined based on Jet.AI’s Net Cash multiplied by the Applicable Premium Percentage. Net Cash of at least $12m is a condition to closing the Business Combination and will consist of the Company’s cash on hand (including any deposits held by Textron Aviation) subtracting any cash net working capital requirement mutually agreed upon, and transaction costs triggered by the closing of the Business Combination. To satisfy closing conditions and to meet the company’s ongoing financing requirements, Jet.AI has signed a $50m non-binding term sheet with Hexstone Capital LP on economic terms substantially similar to those of its existing $16.5m arrangement with Ionic Ventures LLC. The applicable premium percentage paid for the aviation business will be between 115% and 120% equivalent to a dollar value today contemplated in the range of $12m to $22m, depending on the Net Cash value at the close of transaction. 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.
FinSMEs
17/02/2025