Rocket Lab goes public via SPAC with Neutron missile extension

Rocket Lab, the leader among companies building small rockets to launch satellites, will go public via a SPAC merger that values ​​the company at more than $ 4 billion when the deal closes.

The company combines with Vector Acquisition, a special purpose acquisition company. Rocket Lab will quote 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 unlock the full potential of space through our launch and space platforms and is a catalyst for our ambition to create a multi-billion dollar new industry in space applications,” said Peter Beck, CEO of Rocket Lab in a press release. .

Vector’s SPAC is currently trading under the ticker VACQ. Shares of the SPAC were up more than 20% in premarket trading from the previous close of $ 10.25 per share.

The SPAC deal values ​​Rocket Lab at an corporate valuation of $ 4.1 billion, with the company expecting to have approximately $ 750 million in cash after the merger is completed. That money includes up to $ 320 million from Vector Acquisition, as well as a $ 470 million PIPE round led by Vector Capital, BlackRock and Neuberger Berman, among other investors.

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

Beck will continue to lead Rocket Lab as CEO, with Alex Slusky, Vector Capital’s chief investment officer, joining the company’s board of directors – alongside Khosla Ventures’ Sven Strohband, Bessemer Venture Partner’s David Cowan, DCVC’s Matt Ocko and independent director. Mike Griffin.

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

The Electron rockets cost about $ 7 million per launch, are about 60 feet long, and can lift as much as 300 kilograms into low Earth orbit.

Neutron, which is expected to launch for the first time in 2024, will be 41 feet long and will be able to carry as much as 8,000 kilograms to low Earth orbit, the company said. Rocket Lab has not disclosed how much Neutron is expected to cost per launch, noting that the company will need to build a new launch pad at NASA’s Wallops flight facility in Virginia for the first launch.

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