Voyager Space Holdings Acquires Majority Stake in Nanoracks

Voyager Space Holdings Expands Portfolio with X.O. Markets

Voyager Space Holdings has incorporated X.O. Markets, the parent organization of the commercial space services provider Nanoracks, into its expanding collection of space-focused businesses. The initial announcement regarding this agreement occurred last December.

Aggressive Acquisition Strategy

This represents Voyager’s fourth majority stake acquisition within the space industry since its establishment in October 2019. Further expansion is anticipated, with CEO Dylan Taylor forecasting two to four additional acquisitions to be announced throughout the current year. This approach is deliberate and central to Voyager’s overall business strategy.

Taylor clarified that Voyager distinguishes itself from investment funds or private equity firms. “We function as an operating company,” he stated, emphasizing a hands-on approach to building capabilities.

Building a Space Industry Leader

Voyager aims to achieve a level of operational capacity comparable to the established “primes” – the leading companies – in the space sector within a timeframe of seven to ten years. To accomplish this, the company is strategically acquiring majority stakes in various space ventures to broaden its range of competencies.

A key aspect of Voyager’s strategy is avoiding complete ownership of acquired companies, fostering a decentralized operational structure. This approach, according to Taylor, is designed to encourage continued innovation across its diverse portfolio.

A Different Approach to Value Creation

The conventional private equity model of merging competitors and reselling the combined entity is not considered conducive to the growth of the emerging space economy. Taylor highlighted this distinction.

“True value in space is realized by integrating Capability A with Capability B to create a new, more advanced Capability C,” he explained, emphasizing the importance of synergistic development.

Plans for an IPO

The company is also preparing for a public offering through a traditional initial public offering (IPO), anticipated around the third quarter of this year. The S-1 filing is expected to occur sometime this summer, though Taylor refrained from disclosing further details regarding the recent acquisition.

Previous Acquisitions and Core Capabilities

Voyager’s prior significant acquisitions include Pioneer Astronautics, a research and development firm specializing in life support systems for space; Altius Space Machines, an advanced robotics startup; and The Launch Company, a provider of standardized launch support hardware and equipment.

Nanoracks, the latest addition, has been involved in over 1,000 projects related to the International Space Station (ISS), most notably the installation of the first commercial airlock on the ISS. Furthermore, the company has partnered with the Abu Dhabi Investment Office to explore agricultural solutions for harsh environments, including deserts and space.

The Outpost Program and Commercial Space Stations

A particularly noteworthy initiative by Nanoracks is its Outpost program, focused on constructing and operating fully commercial space stations utilizing repurposed upper stages of launch vehicles and existing space debris. A demonstration mission for this program is scheduled to launch aboard a SpaceX mission next month.

A Future Focused on Commercial Space Stations

Collectively, these four acquisitions – encompassing launch support, advanced robotics, research and development, and now Nanoracks – strongly indicate Voyager’s strategic direction towards building and operating commercial space stations. While this vision is still evolving, it is becoming increasingly attainable.

“The past decade of the space industry has been about achieving orbit,” Taylor observed. “The next decade will be defined by destinations. It’s probable that we will see between eight and twelve space stations in orbit by 2030.”