Virgin Orbit to Go Public: $3.2B SPAC Deal

Virgin Orbit to Become Publicly Traded Through SPAC Merger

Virgin Orbit has officially announced its plans to become a publicly listed company through a merger with a special purpose acquisition company (SPAC). This strategic move will result in a combined enterprise valuation of $3.2 billion.

Financial Details of the Merger

Upon completion of the transaction, Virgin Orbit is expected to receive $483 million in cash. This includes a $100 million Private Investment in Public Equity (PIPE) offering.

The newly formed entity will trade on the Nasdaq stock exchange under the ticker symbol VORB, pending the finalization of the merger.

A Growing Trend for Space Startups

Reports from CNBC in June initially indicated the possibility of this deal. Utilizing SPACs as a route to public markets has become increasingly common among private space companies in recent months.

Rocket Lab recently secured approval for its own SPAC merger and will commence trading on Wednesday. Virgin Galactic, another venture associated with Richard Branson, pioneered this trend with its earlier SPAC deal.

Historical Context: Virgin Galactic and Virgin Orbit

Originally, Virgin Galactic and Virgin Orbit operated as a single entity. A subsequent division of the company allowed each to concentrate on its specific market segment.

Both companies have demonstrated substantial advancements in 2021, achieving key milestones. Virgin Galactic successfully completed its first full crewed spaceflight, while Virgin Orbit delivered its inaugural commercial satellite payload.

Virgin Orbit’s Unique Launch System

Virgin Orbit employs a distinctive launch method, deploying its LauncherOne rocket from the wing of a modified 747 aircraft. This aircraft effectively functions as a reusable first stage of the launch system.

The company also operates VOX Space, a subsidiary dedicated to providing launch services specifically for the national security sector.

NextGen SPAC and Funding

The SPAC involved in this merger, NextGen, is spearheaded by a former partner from Goldman Sachs. It will contribute up to $383 million in cash, sourced from its trust fund, once the merger is finalized.