SPAC Deal: Qell Acquisition (QELL) Taking Lilium Public in EV/Disruptive Transport Deal

Qell Acquisition (QELL) is taking Lilium public in a deal valued at $2.37b based on 3.4x 2026E EBITDA of $708M. Lilium is trying to disrupt transportation with a 7-seat electric vertical take-off/landing jet.
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Tuesday morning SPACs start with Qell Acquisition (QELL) announcing it will take Lilium public in a deal valued at $2.37b based on 3.4x 2026E EBITDA of $708M.

Yesterday's Merger Monday saw two deals, AJAX I (AJAX) and CM Life Sciences 2 (CMIIU), both have deal pops of +4% and +8.4% last through the close. But, deal pops aren't a guarantee these days so how investors react the the QELL/Lilium news will be interesting to watch.

QELL closed yesterday below $10 after a month long downward slide. So investors that grabbed QELL under NAV late in the day may get a nice reward this morning if investors like the deal.

QELL Acquisition (QELL) closed at a discount under $10 the day before the merger announcement.

QELL Acquisition (QELL) closed at a discount under $10 the day before the merger announcement.

Investors will also be looking hard at the financial projections of the deal. The deal's valuation is based on 2024 estimated numbers, thus some may worry that this is overly speculative relative to some of the more recent deals with targets having existing revenue and high confidence near-term financials.

QELL financial outlook

QELL financial outlook

Qell Acquisition (QELL) is led by Bill Engle who served for 5 years as a senior executive at GM. Most recently he was President of GM North America, which is GM's largest segment with $100+ billion in 2019 revenue.

Investors looking for a disruptive EV play may like Lilium. It was founded in 2015 and is working to create a 7-seat electric vertical take-off and landing jet.