The deal, expected to close in the last three months of 2021, will value Virgin Orbit at $3.2 billion and list the company on the NASDAQ under the ticker VORB.
Virgin Orbit is solely focused on launching small batches of lightweight satellites into space using its air-launching method. So far, the company has completed three successful flights that’ve seen its 70-foot-long Launcher One rocket take off from beneath the wing of a Boeing 747 jet (nicknamed “Cosmic Girl”) as it flies out over the Pacific Ocean.
SPACs, or special-purpose acquisition companies, have rapidly become a favorite means by which startups — particularly in experimental fields such as spaceflight or self-driving cars — debut on the stock market. SPACs work by taking what’s essentially a shell company and listing it on the stock market for the public to invest in while the SPAC controllers search for an acquisition target.
The SPAC that will be taking over Virgin Orbit, for example, is called NextGen Acquisition Corp. II, which was founded by former Goldman Sachs and PerkinElmer excutives. NextGen made its stock market debut in March this year and had a market value of more than $500 million as of Monday morning.
After Virgin Orbit’s SPAC deal closes, existing investors in Virgin Orbit are expected to retain about 85% ownership over the company. Those investors include Virgin Group, which is essentially Branson’s personal investment firm, Mubadala Investment Company, the Emirati sovereign wealth fund, as well as management and employees.