Atlanta, Georgia-based fractional and jet card company Volato has laid the groundwork to go public through a proposed business combination with Proof Acquisition Corp. I (PACI), the companies announced this morning. Plans call for Volato and PACI, a special purpose acquisition company (SPAC), to complete the transaction later this year. The respective boards of both companies have approved the proposed transaction, which is still subject to PACI stockholder approval and other closing conditions.
Once the transaction is completed, the combined entity expects to trade under the symbol SOAR but retain Volato as the corporate operating brand with company CEO and co-founder Matt Liotta leading the organization.
The companies anticipate a pro forma enterprise value of $261.1 million from the transaction. Current Volato owners would retain approximately 63.5 percent of the ownership.
Volato, which in July completed a separate $10 million Series A funding round led by the Proof family of venture funds, said the business combination proceeds will enable it to continue its growth, better serve customers, and accelerate its strategic plan. The Series A funding round is being used for Volato’s “working capital needs, including deposits for future aircraft deliveries,” the company said.
Founded in 2021, Volato has grown quickly, posting nearly $100 million in revenue in 2022 and amassing a fleet of 18 HondaJets with another 23 on order. Including managed and leased aircraft, Volato’s fleet numbers 25, and it further has four Gulfstream G280s on order for delivery next year. The company offers fractional ownership, jet card and deposit programs, aircraft management services, and on-demand charter using a floating fleet.
"Volato is primed to be a change maker in the private aviation industry,” Liotta said. “Our asset-light business model is structured to maximize fleet utilization and profitability, while our attention to service provides a seamless and elevated aviation experience for our owners and passengers. Bringing Volato to the public markets will allow us to build on this momentum and accelerate our vision to provide unique and customized travel experiences that deliver a better aviation experience for all our customers.”
PACI CEO John Backus said his investment firm was “quickly attracted” to Volato’s discipline in growth in a short period of time from founding. “There’s clearly an enormous market opportunity in the private aviation space for a scaled company with access to low-cost capital to build a sizable fleet of aircraft and solve the inefficiencies that have previously plagued jet ownership,” Backus said. Volato has shown that they have the entrepreneurial mindset and nimbleness to make a mark in an industry dominated by a few large successful companies but cluttered with smaller companies with failed or failing business models. “
He further praised Volato’s “innovative yet simple business model” and said: “The private aviation industry is buffered from many of the headwinds that face other industries and Volato is further protected through its entry-point positioning and efficient best-in-class HondaJet fleet. We believe this merger and related funding provides a unique high-growth, low-volatility opportunity to be part of a strong operating company, and we are committed to helping drive growth over the long term.”