Rocket Lab is seen as a leader among a new breed of so-called small launch vendors.
Photo:
Rocket Lab / Associated Press
Rocket Lab USA Inc. space transportation startup is approaching an agreement to go public by merging with a special-purpose procurement company as a wave of such offers unfolds.
Rocket Lab is in talks with Vector Acquisition Body.
VACQ -0.68%
about a deal that would value the US-New Zealand startup at about $ 4.1 billion, including debt, according to people familiar with the matter. The transaction could be completed by Monday, assuming the talks do not fall apart.
Vector acquisition, supported by the company Capital Capital, focused on technology,
raised $ 300 million in an initial public offering in September. He is one of hundreds of SPACs who go public without a deal and then look for one or more to combine with to raise money in recent months as a wave of emptiness has taken over Wall Street. and Silicon Valley.
Rocket Lab, whose supporters have included defense giant Lockheed Martin Corp., is seen as a leader among a new breed of so-called small launch vendors. The startup has already launched 97 satellites for government and private companies for applications, including research and communications. While a handful of established companies, including Elon Musk’s SpaceX, are focusing on sending giant satellites into higher orbits, there are more than 100 new small rocket companies around the world looking to serve lighter satellites. In addition to Rocket Lab, Virgin Orbit LLC, the British entrepreneur Richard Branson, is a growing player in the field.
Another entity of Mr. Branson, the space travel company Virgin Galactic,
became public through a SPAC merger in 2019 – putting it at the forefront of the frenzy of unverified transactions.
The agreement between Rocket Lab and Vector will include additional funding of approximately $ 470 million in the form of a so-called private equity investment from investors, including BlackRock. Inc.
and Neuberger Berman Group LLC, said people familiar with the matter. Such investments often accompany SPAC transactions.
Rocket Lab is expected to use the proceeds of the deal to fund the development of a medium-lift “Neutron” launch vehicle, adapted for use in satellite mega-constellations, space missions and commercial space flights, people said. The Neutron rocket is expected to be able to lift most of the satellites launched in the coming years and will be positioned as a lower-cost alternative to larger vehicles, they said.
Rocket Lab also has trading ambitions. Indeed, industry officials anticipate that a shakeout may eventually leave only a handful of survivors among small launch providers.
Write to Cara Lombardo la [email protected]
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It appeared in the printed edition from March 1, 2021 under the name of “Space start-up transport close to the public agreement of public missiles.