Virgin Orbit, by Richard Branson, said Boeing Co. will invest in the $ 3.2 billion SPAC-listed satellite launch later this year, an investment that comes as the aircraft manufacturer’s own space program faces obstacles.
Virgin Orbit said it would trade on the Nasdaq stock market by merging with NextGen Acquisition Corp., a special-purpose acquisition company led by former Goldman Sachs banker George Mattson and Greg Summe, a former senior executive at Carlyle group.
Boeing’s planned investment, which the Wall Street Journal first reported earlier Monday, comes through a SPAC-related fundraising round called private equity investment, or PIPE. This fundraiser has raised a total of $ 100 million in commitments, Virgin Orbit said.
A Boeing spokeswoman declined to say how much she was investing. He said it was a strategic move and the Chicago-based company maintains a long-standing relationship with the Virgin Group. Boeing already has an investment in Virgin Galactic Holdings Inc., Mr. Branson’s space tourism business. “We believe in the importance of the satellite launch market and the capabilities that Virgin Orbit brings to the industry,” he said.
Private equity fund AE Industrial Partners LP will also invest in PIPE, Virgin said. AE Industrial Partners did not immediately return any request for comment Monday early.