The company confirmed that Virgin Orbit will merge with a special-purpose acquisitions company (SPAC) to become public. The combined enterprise is valued at $3.2 billion. Virgin Orbit will receive $483 million in cash and a $100 million PIPE at closing. If and when the transaction is completed, the combined company will trade on the NASDAQ under the ticker VORB.
CNBC reported in June that such a deal was being considered. It has been a popular exit option in private space startups over the past months. Rocket Labs SPAC merger just approved. It will begin trading on Wednesday. Richard Branson's other space company, Virgin Galactic was the first major SPAC deal to be approved.
Virgin Galactic is a company that flies people to suborbital orbit. Virgin Orbit transports small satellite payloads into low Earth orbit using the same technology. Before they split, both companies were one. Virgin Galactic and Virgin Orbit both made significant progress in this year's first crew space launch and first commercial satellite payload delivery mission.
Virgin Orbit launches the LauncherOne rocket using a modified 747-class aircraft as its first stage. VOX Space, a subsidiary of Virgin Orbit, is a dedicated launch service provider for the national security market.
NextGen, the blank check business Virgin Orbit will merge with, is headed by a former Goldman & Sachs partner and will provide cash up to $383million from funds it holds in trust.
