Hoping to find out later today. I do not see why it would not. May be a little looser in the cover, but should fit in. And with the flap to tuck it in it should be fine.
Worse case scenario put it in with something else such as paper, micro cloth folded up, etc.
I am not crazy about the Smart Covers, and like the look of the new Targus Cover. I will probably buy the Targus Cover today (provided i get the 64 blk 3G I seek). If the front does not easily fold around back on the Targus Cover (like it does on the Apple Cover), I will take it back and use the Apple Cover until something else comes out.