Provider of launch services for small satellites Virgin Orbit is set to go public through a merger deal with a Special Purpose Acquisition Company (SPAC), NextGen Acquisition Corp. (NGCA), which will leave the company with a market valuation of around $3.2 billion.
This merger deal will include a $100 million financing from Boeing Co. (BA), AE Industrial Partners and other entities inform of private investment in public equity (PIPE).
Virgin Orbit and its industry peers are building miniaturized launch systems seeking to capitalize on an expected boom in demand of compact satellites. These miniaturized launch systems offer a unique air launch method of sending satellites to orbit.
“We can turn any runway across the globe, from an airport into a spaceport, because we fly a (Boeing) 747,” said the company’s chief executive officer, Dan Hart.
According to Hart, the rocket has to start work when it’s already at 35,000 feet as this reduces carbon use by 90%. He further said that they are seeking $4 billion in opportunities including contracts and launch service deals.