(Bloomberg) — Richard Branson’s Virgin Orbit will get an investment from Boeing Co. as it goes public through a reverse merger with blank-check firm NextGen Acquisition Corp. II that values the satellite-launch company at $3.2 billion.
Boeing, AE Industrial Partners and other investors have committed to invest $100 million in the Virgin Orbit deal, according to a statement Monday, part of a wave of mergers with special-purpose acquisition companies this year.
The merger is expected to close around year-end, keeping the Virgin Orbit name, and it will begin trading on the Nasdaq Stock Market under the ticker symbol VORB.
Companies like Virgin Orbit and Elon Musk’s Space Exploration Technologies Corp. have brought attention to the sector by making satellite launches less costly, creating opportunities for new businesses in space.
Founded in 2017, Virgin Orbit uses a customized Boeing 747 jumbo jet to launch its rockets at about 35,000 feet above sea level and employs reusable first-stage vehicles. On June 30, the company delivered satellites for commercial and national security customers.
Boeing rose 1.3% before the start of regular trading in New York, while NextGen climbed 2.5%.
More stories like this are available on bloomberg.com
©2021 Bloomberg L.P.
