New Zealand’s Rocket Lab and Vector Acquisition Corporation announced a definitive merger agreement that will result in Rocket Lab becoming a publicly-traded company.
The deal gives Rocket Lab an implied pro forma enterprise value of US$4.1 billion, or 5.4 times 2025 projected revenue of US$750 million.
The transaction is expected to be completed in the second quarter and Vector Acquisition will change its name to Rocket Lab USA, Inc.
Vector Acquisition is backed by private-equity firm Vector Capital.
The deal has been approved by the boards of both companies but is subject to approval by Vector’s shareholders and other customary closing conditions, the two companies said.
The combined company will trade under the Nasdaq ticker symbol RKLB.
“Rocket Lab is ideally positioned to continue to capture market share in the rapidly expanding space launch, systems and applications markets,” said Vector chief executive Alex Slusky.
Rocket Lab forecasts it will generate positive adjusted earnings before interest, tax, depreciation and amortisation in 2023, positive cash flows in 2024 and more than US$1b in revenue in 2026.
Institutions
A group of institutional investors has committed to participate in the transaction through a significantly oversubscribed private investment in the public entity of approximately US$470m, with 39 total investors including Vector Capital, BlackRock and Neuberger Berman. The PIPE was priced at US$10 per share.
Current Rocket Lab shareholders will own 82% of the pro forma equity of the combined company.
Peter Beck will continue to be chief executive. Slusky will join Rocket Lab’s board alongside Sven Strohband of Khosla Ventures, David Cowan of Bessemer Venture Partners, Matt Ocko of DCVC and Mike Griffin, independent director.
The company is an internationally renowned player in the small satellite industry, sending packages into orbit for government and private commercial customers. It was founded in 2006 by Beck in NZ, before moving the company's registration to the US in 2013. It operates out of Long Beach, California, and has a wholly-owned NZ-based subsidiary.
Rocket Lab also unveiled its medium-lift Neutron rocket — an advanced new generation reusable launch vehicle with an 8-tonne payload lift capacity tailored for mega constellations, deep space missions and human spaceflight.
This transaction will provide the capital to fund that rocket and will also fund “organic and inorganic growth in the space systems market” and support expansion into space applications enabling Rocket Lab to deliver data and services from space, it said.
