Space company Satellogic to go public via Cantor Fitzgerald SPAC at $1.1 billion valuation

A satellite image of the stuck container ship Ever Given in Egypt’s Suez Canal, taken on March 25, 2021.

Satellogic

Satellite Earth imagery specialist Satellogic is preparing to go public, announcing on Tuesday that it will be the latest in a string of space companies merging with SPACs.

Satellogic is merging with special purpose acquisition company CF Acquisition Corp. V – a SPAC sponsored by Cantor Fitzgerald that trades under the ticker CFV. The deal gives the space company a $1.1 billion equity valuation and is expected to close early in the fourth quarter, resulting in Satellogic listing on the Nasdaq under ticker SATL.

A SPAC or special purpose acquisition company raises capital in an initial public offering and uses the proceeds to purchase a private firm and take it public.

Satellogic has 17 imagery satellites in orbit so far, but that is a fraction of the number it needs to bring in projected annual revenue of nearly $800 million within four years.

“We’re going to grow the full [satellite] constellation by 2025 to 300 satellites, to get daily remaps of the entire planet,” Satellogic CEO Emiliano Kargieman told CNBC. “We think that’s really going to change the way companies make decisions every day.”

The deal is expected to add about $274 million in cash for Satellogic’s growth, through funds raised by CFV and a $100 million PIPE round – or private investment in public equity – led by SoftBank and Cantor Fitzgerald. The company previously raised more than $100 million in venture capital and debt since its founding in 2010, with existing Satellogic investors Brazilian venture capital fund Pitanga and the Inter-American Development Bank. Chinese behemoth Tencent was previously an investor in Satellogic, but a person familiar with the matter told CNBC that the firm is no longer a shareholder.

“Satellogic is uniquely positioned to dominate the Earth Observation industry. Its technology, data, and analytics have vast use cases across countless industries,” Cantor Fitzgerald chairman and CEO Howard Lutnick said in a statement.

Shares of CFV rose 1.6% in trading from its previous close of $9.71.

With 240 employees around the world, Satellogic is headquartered in Montevideo, Uruguay while its research and development team is based across the border in Argentina. The company also has operations in Spain, Israel, the U.S. and Beijing.

Satellogic joins a trend of space companies going public through SPAC deals, with Virgin Galactic the first of the recent generation in 2019. Rocket builder Astra and satellite broadband focused AST & Science have each begun trading, with companies Rocket LabSpire GlobalBlackSkyRedwire, and Momentus expected to follow in the coming months.

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