Rocket Lab goes public through SPAC with Neutron rocket expansion

Rocket Lab, the leader among companies building small rockets to launch satellites, is going public through a SPAC union that values ​​the company at more than $ 4 billion when the deal closes. .

The company is teaming up with Vector Acquisition, a special purpose construction company. Rocket Lab will list on the Nasdaq under the RKLB ticker 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 desire to create a new multi-billion dollar business. in space applications, “Rocket Lab CEO Peter Beck said in a press release.

SPAC Vector is currently trading under the VACQ ticker. Shares of the SPAC climbed more than 20% in pre-sale trading from its previous close of $ 10.25 a share.

The SPAC contract values ​​Rocket Lab at an enterprise valuation of $ 4.1 billion, with the company expecting to be approximately $ 750 million in cash upon completion of the merger. That money 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 funding, or private investment in public equity, allows private investors to buy public shares at below market prices. SPAC is a special purpose construction company in which investors issue a blank check to a company for anonymous ownership purposes from other companies.

Beck will continue to lead Rocket Lab as CEO, with Vector Capital chief investment officer Alex Slusky ready to join the company’s board of directors – along with Sven Strohband Khosla Ventures, Venture Partner David Cowan Venture, Matt Ocko at DCVC, and independent director Mike Griffin.

Rocket Lab also unveiled plans for a second larger rocket called Neutron to raise even more payload than the current Electron rocket. The company has launched 97 satellites on 18 Electron messages to date.

Their Electron rockets are priced at around $ 7 million per launch, stand at about 60 feet tall and capable of lifting up to 300 kilograms to low Earth Orbit.

Neutron, which is expected to launch in 2024 for the first time, will stand at 131 feet in height and will be able to carry up to 8,000 kilograms to low orbit on Earth, the said company. Rocket Lab did not reveal what Neutron is expected to cost per launch, noting that its first release will require the company to build a new start-up machine at NASA’s Wallops flight facility in Virginia.

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