Richard Branson is looking for a specialty procurement company to merge with another of his space companies, according to a person familiar with the matter.
The billionaire’s satellite launcher, Virgin Orbit has hired bankers, including Credit Suisse Group AG, to search for a SPAC to lure the company with a valuation of as much as $ 3 billion, says the person who asked not to be named because the bookings are private. The talks are expected to begin in the coming weeks, with plans to reach an agreement within the next few months and finalize it by late summer, the person said.
Virgin Orbit’s effort would contribute to a number of transactions in which commercial space companies sought public markets through the SPAC boom. Rocket Lab, which launches smaller payloads from New Zealand, announced plans earlier this month to merge with Vector Capital at a valuation of $ 4.1 billion. In February, based in California Astra announces a SPAC trading with Holicity Inc. which implied a business value of $ 2.1 billion.
Virgin Group declined to comment, as did Credit Suisse. A spokeswoman for Virgin Orbit, based in Long Beach, California, declined to comment.
Branson’s Virgin Galactic Holdings Inc., which is developing a business to transport tourists to the edge of space, was a pioneer in the space company SPAC boom with a 2019 agreement. Credit Suisse and LionTree helped with the merger, which raised $ 800 million for Virgin Galactic.
Virgin Orbit’s two-stage rocket reached orbit for the first time in January, deploying ten small CubeSats as part of a national aerospace administration program. The company’s vehicle falls from the wing of a Boeing Co. 747 jet above 35,000 feet before flying into space. The rocket did not reach orbit during a previous launch attempt in May 2020.
The Wall Street Journal reported earlier on Virgin Orbit’s plans.
– With help by Crystal Tse and Jonathan Roeder
(Updates 4th paragraph with Virgin Orbit not wanting to comment)