Rocket Lab goes public through SPAC with Neutron missile expansion

Rocket Lab, the leader in companies building small rockets for satellite launches, goes public through a SPAC merger that values ​​the company at more than $ 4 billion at the end of the transaction.

The company combines with Vector Acquisition, a special purpose procurement company. Rocket Lab will display the Nasdaq below the RKLB marker at the end of the transaction, which is expected in the second quarter.

“This step accelerates Rocket Lab’s ability to unlock the full potential of space through our launch platforms and spacecraft and catalyzes our ambition to create a new multi-billion dollar business vertical in space applications,” said Peter Beck, CEO of Rocket Lab, in a press release. .

The SPAC of the Vector is currently traded under the VACQ ticker. SPAC shares have risen more than 20% in premarket trading since the previous close of $ 10.25 per share.

The SPAC agreement values ​​Rocket Lab at a $ 4.1 billion valuation of the company, with the company expecting to have about $ 750 million in cash after the merger is completed. This money includes up to $ 320 million from Vector Acquisition, as well as a $ 470 million PIPE round led by Vector Capital, BlackRock and Neuberger Berman, among other investors.

PIPE financing or private investment in public capital allows private investors to buy public shares at below market prices. An SPAC is a special purpose procurement company, in which investors essentially give an unfinished check to a company for the purpose of unspecified acquisitions of other companies.

Beck will continue to lead Rocket Lab as CEO, and Vector Capital Investment Director Alex Slusky will join the company’s board of directors – along with Sven Strohband of Khosla Ventures, David Cowan of Bessemer Venture partner Matt Ocko of DCVC and independent director Mike Griffin.

Rocket Lab has also revealed plans for a second larger rocket called the Neutron to lift even more payloads than its current Electron rocket. The company has launched 97 satellites on 18 Electron missions so far.

Its Electron rockets are priced at about $ 7 million per launch, are about 60 feet high and are capable of lifting up to 300 kilograms in Earth orbit.

The neutron, which is expected to be launched in 2024 for the first time, will be 131 feet high and will be able to carry up to 8,000 kilograms into Earth’s low orbit, the company said. Rocket Lab did not disclose how much the Neutron expects to cost per launch, noting that the first launch will require the company to build a new launcher at NASA’s Wallops flight facility in Virginia.

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