Rocket Lab going public by way of SPAC with Neutron rocket growth

Peter Beck, CEO of Rocket Lab, stands with his company’s electron rocket.

Missile laboratory

Rocket Lab, the leader among companies that build small rockets to launch satellites, is going public through a SPAC merger that valued the company at more than $ 4 billion at the time of the deal.

The company works with Vector Acquisition, a special-purpose acquisition company. Rocket Lab will be listed on the Nasdaq under the ticker RKLB when the deal closes, which is expected in the second quarter.

“This milestone accelerates Rocket Lab’s ability to realize the full potential of space through our launch and spacecraft platforms and catalyzes our drive to create a new multi-billion dollar space application business,” said Peter Beck, CEO of Rocket Lab. in a press release.

Vector’s SPAC is currently traded under the ticker VACQ. The SPAC’s shares were up more than 20% in premarket trading from the previous closing price of $ 10.25 per share.

The SPAC deal values ​​Rocket Lab at an enterprise value of $ 4.1 billion. The company expects cash around $ 750 million after the merger is complete. That money includes up to $ 320 million from the Vector acquisition and a $ 470 million PIPE round led by Vector Capital, BlackRock and Neuberger Berman, among others.

PIPE, or private investment in public equity, enables private investors to buy public shares at below market prices. A SPAC is a special-purpose acquisition company where investors essentially give a company a blank check for the purpose of unspecified acquisitions of other companies.

Beck will continue to lead Rocket Lab as CEO. Alex Slusky, Vector Capital’s Chief Investment Officer, will join the company’s board of directors, alongside Sven Strohband from Khosla Ventures, David Cowan from Bessemer Venture Partner, Matt Ocko from DCVC and independent director Mike Griffin.

Unveiling of the larger neutron rocket

Rocket Lab also revealed plans for a second, larger rocket called the Neutron to lift even more payloads than the current Electron rocket. The company has so far launched 97 satellites on 18 electron missions.

The electron rockets cost about $ 7 million per launch, are about 60 feet high, and can lift up to 300 kilograms into orbit.

Neutron, which is expected to launch for the first time in 2024, will have a height of 30 meters and be able to carry up to 8,000 kilograms into low-earth orbit, the company said. Rocket Lab did not disclose how much Neutron is expected to cost per launch, and noted that the company will need to build a new launchpad at NASA’s Wallops facility in Virginia on initial launch.

Rocket Lab’s electron rocket launches on July 4, 2020.

Missile laboratory

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