Experience (ASX:EXP) signed a non-binding term sheet with New Zealand's Inflite Group to explore combining their Australian and New Zealand skydive and aviation businesses under a newly formed New Zealand holding company, MergeCo, according to an Australian bourse filing on Tuesday after market hours.

The proposed transaction values the combined company at around AU$110 million, per the filing.

The company would receive about AU$65 million in total consideration, including AU$41 million in cash, a AU$5 million vendor note repayable in five years, and a nearly 33% stake in MergeCo valued at around AU$19 million, with existing Inflite shareholders retaining the remaining ownership, the filing said.

The parties have agreed to an exclusivity period to conduct due diligence and negotiate definitive agreements, while the proposed transaction remains subject to financing, regulatory, shareholder, and other customary approvals, the filing added.