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April 11 (Reuters) – Private jet service Flexjet Inc said on Tuesday it has terminated the planned merger with billionaire Todd Boehly’s black-check firm Horizon Acquisition Corporation II HZON.A.
Over the last couple of years, the market for special purpose acquisition companies, or SPACs, has soured due to poor financial performance and a regulatory crackdown by the U.S. Securities and Exchange Commission.
In October last year, Flexjet said it was planning to merge with special purpose acquisition company Horizon Acquisition in a deal that valued the combined company at $3.1 billion, including debt.
“We believe that the decision to terminate at this time is in the best interests of our aircraft owners, employees and other stakeholders,” said Flexjet Chairman Kenn Ricci.
Special purpose acquisition companies are shell companies that raise money in an initial public offering and put it in a trust for the purpose of merging with a private company and taking it public.
Boehly, the founder of Greenwich, Connecticut-based Eldridge Industries and chairman of Horizon acquisition, is a prolific investor in SPACs.
“We have enjoyed and will continue our long partnership with Flexjet’s management team and respect their decision,” Boehly said.
Flexjet also said it expects to hire an additional 1,400 employees in 2023.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Krishna Chandra Eluri)
((JaiveerSingh.Shekhawat@thomsonreuters.com;))
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