Categories Analysis, Industrials

AIRO Group Holdings all set to go public through SPAC merger

After the business combination, the company's stock will trade on the Nasdaq stock market under the ticker symbol AIRO

AIRO Group Holdings, Inc., a diversified aerospace and defense firm, said it signed a business combination agreement with special purpose acquisition company Kernel Group Holdings (NASDAQ: KRNLU) to become a publicly listed business.

The company has offices in the United States, Canada, and Europe. It operates through four operating segments — Advanced Avionics, Electric Air Mobility, Uncrewed Air Systems, and Training. They focus on bringing autonomy, artificial intelligence, and advanced operations to mainstream commercial and military marketplaces.

Nasdaq Listing

The business combination is expected to complete in the third quarter, and the combined entity is estimated to have an equity value of around $847 million on a pro forma basis. Post-merger, the new company will be renamed AIRO Group, Inc. The management has applied to list the stock on the Nasdaq stock market under the ticker symbol AIRO.

Encouraged by the success of its popular brands Aspen Avionics and Jaunt Air Mobility, AIRO Group is currently expanding its global portfolio. For 2023, the management projects revenues of $43 million.

Leadership Team

Currently, AIRO Group is led by chief executive officer Captain Joe Burns who is also the co-founder. Chirinjeev Kathuria, a serial entrepreneur who owns stakes in many other companies, will be the chairman of the new company’s board of directors — consisting of nine members including Burns, Kernel’s chief executive officer Suren Ajjarapu, John Uczekaj, and Michael Peterson.

Ocean Biomedical, Inc. (NASDAQ: OCEA) Research Summary

Commenting on the business combination, Suren said, “AIRO leverages decades of industry expertise across the drone services, aviation, and avionics markets to offer a sector-leading enterprise providing innovative aerospace, urban air mobility, and UAS products and services. We think that the combination will result in positive valuations and long-term growth, as we build the leading mid-market publicly traded aerospace and defense company.”

The other leading players in this segment of the aerospace and defense sector include Joby Aviation Inc (NYSE: JOBY), Eve Holding Inc (NYSE: EVEX), and AeroVironment, Inc (NASDAQ: AVAV). Before signing the merger agreement, Kernel Group Holdings entered into a share backstop pact with entities managed by Meteora Capital that own equity interests in the sponsor.

Looking for more insights on the earnings results? Click here to access the full transcripts of the latest earnings conference calls!

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