Satellite imaging companies Planet Labs and Satellogic join a wave of space stocks using a “blank check merger” to go public.
They will further diversify the space stocks already or soon to be public, which include launch providers or hardware makers.
Planet Labs is merging with special purpose acquisition company dMY Technology Group IV (DMYQ). The company has 200 satellites in orbit, the largest Earth-imaging satellite fleet, according to Planet.
The transaction values Planet at $2.8 billion. The deal is expected to close in the fourth quarter with Planet Labs listing on the NYSE under the ticker symbol “PL.”
Planet said Wednesday it plans to use the proceeds from the transaction “to expand its operations and services to enable a more sustainable and secure planet.”
Satellogic, another satellite imaging company, said Tuesday it would merge with CF Acquisition Corp. V (CFV), Cantor Fitzgerald’s special purpose acquisition company. The terms of the deal imply an enterprise value of $850 million.
Satellogic said the merger will help it boost the number of satellites in its constellation to reach over 300 by 2025.
The transaction should close early in the fourth quarter, subject to regulatory approvals. It will trade on the Nasdaq under the ticker symbol “SATL.”
SPACs Love Space Stocks
SPACs offer a way for private companies to go public without an IPO. Instead of selling stock, the private enterprise merges with a shell company that’s already public. SPACs have become popular after years of being shunned by the financial community. Virgin Galactic (SPCE) went public in 2019 after a reverse merger with Social Capital Hedosophia Holdings kickstarting the current craze.
DMY Technology rose 2% on the stock market today, and CF Acquisitions edged up 0.2%. Among other space stocks, Virgin Galactic shares fell 1.8%, while Astra jumped 7%.
Maxar Technologies (MAXR), which makes Earth observation satellites and provides satellite imaging, was flat.
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