Rocket Lab CEO Peter Beck has an Electron rocket from his company.
Rocket Lab
Rocket Lab, a leader among companies that build small rockets to launch satellites, will go public through a merger of SPAC that values the company at more than $ 4 billion when the deal closes.
The company is merging with Vector Acquisition, a special purpose acquisition company. Rocket Lab will be listed on Nasdaq under the ticker 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 platforms and spacecraft and catalyzes our ambition to create a new multi-billion dollar vertical business in space applications,” said Peter Beck, CEO of Rocket Lab, in a press release.
Vector’s SPAC is currently marketed under the VACQ ticker. SPAC’s shares rose more than 20% in pre-market trading compared to the previous close of $ 10.25 per share.
The SPAC business values Rocket Lab at a $ 4.1 billion business valuation, with the company hoping to have around $ 750 million in cash after the merger is completed. This 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 other investors.
PIPE financing, or private investment in public shares, allows private investors to buy public shares at prices below the market. SPAC is a special purpose acquisition company where investors essentially give a company a blank check for the purpose of unspecified acquisitions of other companies.
Beck will continue to lead the Rocket Lab as CEO, with Vector Capital’s investment director Alex Slusky set to join the company’s board of directors – alongside Khosla Ventures’ Sven Strohband, Bessemer Venture Partner David Cowan, Matt DCVC’s Ocko and independent director Mike Griffin.
Revealing the largest Neutron rocket
The Rocket Lab has also revealed plans for a second, larger rocket, called Neutron, to lift even more payloads than its current Electron rocket. The company has launched 97 satellites on 18 electron missions to date.
Its electron rockets cost about $ 7 million per launch, measuring about 18 meters in height and capable of lifting up to 300 kg in a low earth orbit.
The Neutron, which is due to launch in 2024 for the first time, will be 131 feet tall and will be able to carry up to 8,000 kilograms to Earth’s low orbit, the company said. The Rocket Lab has not revealed how much Neutron should cost per launch, noting that its first launch will require the company to build a new launch pad at NASA’s Wallops flight facilities in Virginia.
The Rocket Lab’s electron rocket will launch on July 4, 2020.
Rocket Lab
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