Astra to Acquire Apollo Fusion - Expanding In-Space Propulsion Capabilities

Astra to Acquire Apollo Fusion for $50 Million

Astra, the space launch company preparing to become publicly listed through a SPAC merger, has announced the acquisition of Apollo Fusion, a developer of electric propulsion systems. The announcement was made on Monday by the company.

Electric Propulsion Capabilities

Electric propulsion is highly efficient for maneuvering spacecraft between orbits, including journeys to the moon. This capability aligns with Astra’s ambitions for missions extending beyond Earth orbit, as noted by Chief Engineer Benjamin Lyon in a recent blog post.

Deal Terms and Financial Details

The acquisition will be executed through a combination of stock and cash. Astra will pay $30 million in company stock and $20 million in cash, resulting in a total purchase price of $50 million.

Furthermore, the agreement includes potential earn-out payments of up to $95 million. These additional funds will be released to Apollo Fusion contingent upon the achievement of specific performance targets.

PJT Partners is serving as the financial advisor to Astra throughout this transaction, as confirmed by the Alameda-based launch provider on Monday.

Vertical Integration Strategy

Astra CEO Chris Kemp has consistently expressed his vision for the company as a fully integrated launch and space services provider. Acquiring Apollo’s thruster technology is a crucial step in realizing this objective.

While Astra successfully completed its initial test launch from Kodiak, Alaska in December, Kemp has publicly stated intentions to establish a schedule of monthly commercial launches.

Apollo’s Propulsion Systems

Apollo Fusion currently offers two electric propulsion (EP) thruster systems: the Apollo Constellation Engine (ACE) and the ACE Max. Both systems are designed to operate with either krypton or xenon propellants.

The company has already secured a contract with York Space Systems to provide the propulsion system for a Low Earth Orbit (LEO) satellite constellation program scheduled for launch in 2022.

Closing and Nasdaq Listing

The completion of the transaction between Astra and Apollo Fusion is dependent on the finalization of Astra’s merger with the special purpose acquisition company Holicity. This merger is expected to occur later this year.

Chris Kemp announced via Twitter on Monday that the company anticipates commencing trading on the Nasdaq stock exchange under the ticker symbol $ASTR on July 1.

This report has been updated to reflect Chris Kemp’s Twitter announcement.