Rocket Lab is seen as a leader in a new breed of so-called small launch providers.
Photo:
Rocket Lab / Associated Press
The beginning of space transportation Rocket Lab USA Inc. it is approaching an agreement to be made public by merging with a special-purpose acquisition company, as a wave of such offers occurs.
Rocket Lab is in talks with Vector Acquisition Corp.
VACQ -0.68%
on an agreement that would value the launch of the United States and New Zealand at around $ 4.1 billion including debt, according to people familiar with the matter. The transaction could end on Monday, assuming the conversations do not unravel.
Vector acquisition, supported by Vector Capital, a technology-focused private equity firm,
raised $ 300 million in an initial public offering in September. It’s one of hundreds of SPACs, which go public without business and then look for one or more to raise money in recent months, as a wave of blank verification prevailed on Wall Street and Silicon Valley.
The Rocket Lab, among its sponsors, has included advocate Lockheed Martin Corp., is seen as a leader among a new breed of so-called small launch providers. The startup has already launched 97 satellites for government and private companies for applications such as research and communications. While a handful of established companies, including Elon Musk’s SpaceX, are focusing on sending huge satellites into higher orbits, there are more than 100 new small rocket companies around the world that aim to serve lighter satellites. In addition to Rocket Lab, Virgin Orbit LLC, British entrepreneur Richard Branson, is a growing player in the field.
Another of Mr. Branson’s entities, the space tourism company Virgin Galactic,
was made public through a SPAC merger in 2019, placing it at the forefront of the frenzy of the blank verification agreement.
Rocket Lab’s deal with Vector is expected to include additional funds of about $ 470 million in the form of so-called private equity investment by investors such as BlackRock. Inc.
and Neuberger Berman Group LLC, said people familiar with the matter. These investments often accompany SPAC offerings.
Rocket Lab is expected to use the proceeds of the deal to fund the development of a mid-range “Neutron” launch vehicle designed for use in mega-constellations of satellites, space missions and commercial spaceflight. according to people. The Neutron rocket is expected to be able to lift most of the satellites planned for launch in the coming years and position itself as a lower-cost alternative to larger vehicles, they said.
Rocket Lab also has business ambitions. In fact, industry officials predict that a shake-up could eventually leave only a handful of survivors among small launch vendors.
Write to Cara Lombardo a [email protected]
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It appeared in the March 1, 2021 print edition as “The start of space transportation has no agreement with the public rocket lab. There is no agreement to combine with blank control.