US Company Rocket Lab is Drawing Near a Merger with Vector SPAC19th Mar 2021
Rocket Lab announced its intention to merge with Vector SPAC (special-purpose acquisition company) on 28th February. While none of the companies have disclosed a lot of information on the merger, it is known that the deal could be finalized by very soon. Additional details of the deal have also been confirmed.
Rocket Lab USA Merges with Vector SPAC
According to Wall Street Journal, after Rocket Lab publicly merges with Vector SPAC, the small satellite company’s worth will reach $4.1 billion. The same source reports that the deal could be finalised very quickly. However, no updates have been available so far.
Vector SPAC is backed up by Vector Capital. The latter is a private-equity company with a strong focus on technology. In its initial public offering last September, the company raised $300 million.
Rocket Lab also has some pretty impressive backup from defence giant, Lockheed Martin Corp. This startup is one of the few small satellite launch providers that are actively launching its lightweight Electron rocket. To date, Rocket Lab has already delivered 97 satellites into required orbits. Both private and government entities are among the company’s clients.
It is expected that an upcoming merger with Vector SPAC will bring Rocket Lab an additional $470 million of private investment. These funds will be used for the development of another of their rockets — Neutron. Unlike the currently operational Electron, Neutron will have a medium payload capacity. This launch vehicle should be suitable for deploying mega-constellations of satellites, along with a variety of commercial space missions.
While little is known about Neutron specs, this carrier should become a more affordable alternative to other heavyweight rockets. However, it looks like Rocket Lab and Vector SPAC will have to go through the merger before they contemplate launching this new spacecraft.