Terran Orbital Signs $1.58 Billion Deal with SPAC
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The Florida-based satellite maker is merging with a special-purpose acquisition company to be valued at $1.58 billion.
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Florida-based Terran Orbital
According to the Wall Street Journal, Terran Orbital is the latest in a series of space-related companies listing with Special-Purpose Acquisition Companies to go public at a $1.58 Billion valuation.
Founded in 2013, it will merge with Tailwind Two Acquisition Corp, led by Casper Sleep Inc. Chief Executive Philip Krim.
Situated in Florida, the company designs and manufactures satellites for clients such as the National Aeronautics and Space Administration, the United States Defense Department, and EchoStar Corp. SATS 1.17 percent, a supplier of satellite and internet communication services.
Terran plans on launching next year while it constructs its own constellation of low-Earth orbit satellites, targeting customers such as merchants who need to track their boats and governments watching war zones.
This is not the first space firm that goes public via SPAC mergers, with added benefits and limited track histories, they capitalize on investors' anticipation that space travel for business, tourism, and research would become far more affordable in the future years.
A depiction of how this works would be how insurance companies in Florida, to avoid insurance fraud, have the ability to map out rooftops pre-and post- hurricanes.
According to Terran's Chief Executive Marc Bell, “That couldn’t happen 10 years ago because the satellite technology was too expensive,” he said.
SPACS were popular early in the year, but their popularity waned as many firms who went public struggled to reach their commercial objectives. Their modus operandi is raising funds by going public and generally having a fixed length of time to find a target for purchase.
Terran gains access to nearly $345 million owned by the SPAC as a result of the merger. It will additionally receive $125 million in funding from investors such as Lockheed Martin Corp. LMT 0.14 percent, a current Terran investor and client, as well as private-equity companies AE Industrial Partners and Francisco Partners.
Bell cited that the funds will aid to expand production plants in California, and construct a larger facility in Cape Canaveral, Florida. Florida State has also invested $300 million into the project, while Terran claims it will be capable of producing more than 1,000 satellites yearly.
