Satellogic to Go Public: $850M SPAC Deal

Satellogic Goes Public Through SPAC Merger

While the initial surge of interest in space-focused SPACs has subsided, activity continues within the sector. Earth observation company Satellogic has recently announced its intention to become a publicly listed entity through a merger with CF Acquisition Corp. V.

CF Acquisition Corp. V is a special purpose acquisition company (SPAC) established by Cantor Fitzgerald. This move represents a significant step for Satellogic as it seeks to expand its capabilities and market reach.

Current Capabilities and Future Expansion

Currently, Satellogic operates a constellation of 17 satellites in orbit. The company’s ambitious plan involves scaling this number to exceed 300 satellites.

This expansion is designed to facilitate the delivery of sub-meter resolution imagery of Earth on a daily basis. Such frequent updates will be invaluable for a variety of applications.

Financial Details of the Deal

The merger agreement values Satellogic at $850 million. A private investment in public equity (PIPE) component, totaling $100 million, is also included in the transaction.

Key investors contributing to the PIPE include SoftBank’s SBLA Advisers Group and Cantor Fitzgerald. Upon completion of the deal, the combined entity is projected to have a cash reserve of approximately $274 million.

Revenue Projections and Funding History

Forecasts indicate that the combined company anticipates generating around $800 million in revenue by the year 2025. This projection underscores the potential for growth within the Earth observation market.

Since its founding in 2010, Satellogic has secured nearly $124 million in funding. Investors include prominent firms such as Tencent and Pitanga Fund.

Competitive Advantage

Satellogic asserts that its satellites are uniquely positioned to deliver high-resolution imagery at a comparatively accessible price point for commercial users. This affordability is a key differentiator.

The company claims its technology provides a resolution level not commonly available at similar cost structures. This positions Satellogic favorably within the competitive landscape.

Source: TechCrunch