Rocket Lab CEO Peter Beck stands with one of his Electron rockets.
Rocket Laboratory
Rocket Lab, the leader among companies building small rockets to launch satellites, is being introduced through a merger of the SPAC that values the company at more than $ 4 billion when the deal closes.
The company combines with Vector Acquisition, a specialty sourcing company. Rocket Lab will list on the Nasdaq under the tick RKLB when the deal closes, which is expected in the second quarter.
“This milestone accelerates Rocket Lab’s ability to unlock the full potential of space through our launch and spacecraft platforms and catalyzes our ambition to create a new multi-billion dollar vertical in space applications,” said Peter Beck, CEO of Rocket Lab, said in a news release. .
Vector’s SPAC is currently trading below the ticker VACQ. Shares of the SPAC rose more than 20% in the trading of the forex market, compared to the previous close of $ 10.25 per share.
The SPAC deal values Rocket Lab at a valuation of $ 4.1 billion, while the company will have approximately $ 750 million in cash after the merger. The cash 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 others.
PIPE, or private investment in public shares, enables private investors to buy public shares at below-market prices. A SPAC is a special acquisition company in which investors essentially give a blank check to a company for unspecified acquisitions of other companies.
Beck will continue to lead Rocket Lab as CEO, with Alex Capital, chief investment officer of Vector Capital, joining the company’s board of directors – along with Sven Strohband, Khosla Ventures, David Cowan, Bessemer Venture Partner, Matt Ocko of DCVC and Mike Griffin, independent director.
Launch of the larger Neutron rocket
Rocket Lab has also announced plans for a second, larger rocket called Neutron to lift even more payloads than its current Electron rocket. The company has so far launched 97 satellites on 18 Electron missions.
Its electron rockets are about $ 7 million per launch, about 60 feet long and can lift as much as 300 kilograms to a low earth orbit.
Neutron, which is expected to be launched for the first time in 2024, will be 131 meters long and can carry up to as much as 8,000 kilograms to a low orbit in the earth, the company said. Rocket Lab has not announced how much Neutron is expected to cost per launch, noting that the company’s first launch will have to build a new launch pad at NASA’s Wallops flying facility in Virginia.
Rocket Lab’s Electron rocket launches on July 4, 2020.
Rocket Laboratory
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