Rocket Lab is going public on a SPAC at a $4.1 billion valuation and unveils a new rocket
Rocket Lab, a developer of launch vehicles and smallsats, will merge with a special-purpose acquisition company (SPAC) to support development of a larger launch vehicle, part of the latest wave of deals to take space companies public.
The SPAC deal values Rocket Lab at $4.1 billion and is expected to close in the second quarter of 2021. Once the merger is done, Vector Acquisition Corporation, the SPAC Rocket Lab is merging with, will change its name to Rocket Lab USA, Inc, and the Nasdaq ticker symbol will be RKLB.
The merger will provide Rocket Lab with up to $320 million from Vector Acquisition’s account. In addition, a concurrent private investment in public equity (PIPE) round, led by Vector Capital, BlackRock and Neuberger Berman, will provide $470 million.
The company will have $750 million in cash when the deal closes, fueling development of the company’s next rocket dubbed Neutron, a fully reusable launch vehicle capable of lifting eight tons to orbit. The rocket is “tailored for mega constellations, deep space missions and human spaceflight,” the company said in a statement.