Rocket Lab is seen as a forerunner among a new breed of so-called small launch providers.
Photo:
Rocket Lab / Associated Press
The rocket transport company Rocket Lab USA Inc. approaching an agreement to become known through a merger with a specialty procurement company, while a wave of such transactions continues.
Rocket Lab talks to Vector Acquisition Corp.
VACQ -0.68%
according to people familiar with the matter, the US and New Zealand venture will include about $ 4.1 billion. The deal could be finalized on Monday, if the deal does not fall apart.
Vector acquisition, backed by technology-oriented private equity firm Vector Capital,
$ 300 million raised in an initial public offering in September. It’s one of hundreds of SPACs known without a business and then looking for one or more to combine to raise money in recent months, as Wall Street and Silicon Valley have taken the same position.
Rocket Lab, whose supporters include defense giant Lockheed Martin Corp., is seen as a forerunner among a new kind of so-called retailer. The launch has already launched 97 satellites for government and for private enterprises for applications, including research and communications. While a handful of established companies, including Elon Musk’s SpaceX, are focusing on sending large satellites to higher orbits, there are more than 100 new small-scale rocket firms around the world aimed at serving lighter satellites. In addition to Rocket Lab, British entrepreneur Richard Branson’s Virgin Orbit LLC is an increasingly larger player in the field.
Another from mr. Branson’s entities, Virgin Galactic, a space tourism industry,
saw the light of day in 2019 through a SPAC merger, which put it at the forefront of the madness for the empty check.
Rocket Lab’s agreement with Vector is expected to include additional funds of approximately $ 470 million in the form of a so-called private investment in public shares of investors, including BlackRock. Inc.
and Neuberger Berman Group LLC, said the people familiar with the matter. Such investments are often associated with SPAC transactions.
Rocket Lab is expected to use the proceeds of the deal to fund the development of a medium-sized “Neutron” lance vehicle designed for use in mega-constellations, space missions and commercial spaceflight, the people say. The Neutron rocket is expected to lift most satellites that are expected to launch in the coming year and be positioned as a cheaper alternative to larger vehicles.
Rocket Lab also has ambitions to trade. Indeed, industry officials expect that a shake-up could eventually leave only a handful of survivors among small launch providers.
Write to Cara Lombardo by [email protected]
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In the print issue of March 1, 2021, ‘Space-Transport Startup Nears Accord to Go Public Rocket Lab Nears Deal to Merge with Blank-Check’.