AST & Science, which is developing a space-based mobile broadband network, is going public through a merger with a blank check company, according to knowledgeable people.
AST merges with New Providence Acquisition Corp., a special purpose acquisition company, or SPAC, said the people, who asked not to be identified because the information is private. The combined company will be valued at $ 1.4 billion including debt. The deal is expected to close shortly in the first quarter of 2021.
AST, also known as AST SpaceMobile, and New Providence raised $ 230 million from a private placement to fund the transaction, the people said. The placement was led by AST’s strategic partners, including Vodafone Group Plc, Japanese online retailer Rakuten Inc., American Tower Corp. and the hedge fund arm of UBS Group AG UBS O’Connor, people said.
An AST representative declined to comment. A New Providence spokesperson could not be reached for comment.
AST, based in Midland, Texas, plans to provide broadband services from space to cell phones, its website said. It is partnering with Vodafone to launch its commercial mobile communications service in 2023, which provides a 4G network, the people said.
New Providence raised $ 230 million in an IPO last year.