NASDAQ-listed location systems provider Inpixon has entered into a merger agreement with XTI Aircraft.

XTI, which is developing a fixed-wing, VTOL aircraft it calls the TriFan 600, joins the growing list of OEMs in the sector to list publicly. The enterprise value of XTI came to between $252m and $343m. A valuation worked out after comparison with some public companies with similar business models to XTI in the air travel/VTOL segment and an average enterprise value of approximately $1.6bn, said Inpixon.

If completed, the merger will result in a combined publicly traded company that will focus on advancing the TriFan 600 to market.

David Brody, founder and chairman of XTI, said: “We believe that the TriFan 600 airplane will revolutionise point-to-point air travel by combining the comfort, speed, and range of similar conventional business aircraft with the flexibility, convenience, and pinpoint transportation of a helicopter. In 2019, we successfully conducted multiple hover tests of our two-thirds scale unmanned proof-of-concept configuration of the TriFan. After we close, we expect to be in a strong position to expand our operations, work toward building our first full-scale piloted test aircraft, and continue our efforts toward achieving FAA certification and commercial production.”

Nadir Ali, CEO of Inpixon, added: “We believe that with XTI’s experienced executive team and the disruptive potential of the TriFan 600 for the aviation industry, this transaction has the potential to unlock value for Inpixon shareholders. We anticipate that this transaction will not only aid in the growth of XTI but will also enable Inpixon shareholders to own a meaningful interest of approximately 40% of the outstanding common stock of the combined company with a higher valuation in a multibillion-dollar market.”