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Satellogic, space company to go public via SPAC merger worth $850 million

By Ishika Dangayach on Jul 07, 2021 | 05:37 AM IST

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Satellogic, a satellite Earth imagery expert, to go public through a special purpose acquisition company (SPAC), CF Acquisition Corp. V, backed by financial services giant Cantor Fitzgerald.

The SPAC transaction values the firm at $850 million and includes a $100 million PIPE funded by SoftBank's SBLA Advisers Group and Cantor Fitzgerald. The merged business is expected to generate about $800 million in revenue by 2025, and Satellogic intends to have a cash position of around $274 million after the acquisition.

The transaction is scheduled to conclude early in the fourth quarter and will be listed on the Nasdaq under the ticker SATL.

A SPAC, or special purpose acquisition company, generates capital through an initial public offering and then utilizes the proceeds to buy a private company and take it public.

Satellogic currently has 17 satellites in orbit and plans to expand its constellation to over 300 satellites to offer sub-meter resolution imagery of the Earth regularly.

“The merger will allow us to continue building out our constellation of satellites and maintain our position as a global leader in sub-meter imagery,” said Satellogic CEO & Co-Founder, Emiliano Kargieman, in a statement.  “Satellogic is poised to be the only company capable of remapping the world daily at the sub-meter resolution necessary to address commercial applications affordably.”

The company has inked a multi-launch agreement with SpaceX to deliver the whole constellation of 300+ satellites, which it intends to finish by 2025.

Satellogic has 240 workers worldwide and is headquartered in Montevideo, Uruguay, with its research and development staff located over the border in Argentina. The company also has offices in Spain, Israel, the United States, and Beijing.

CFV shares climbed 1.6 % in trade from their previous close of $9.71.

Satellogic's sole financial advisor is J.P. Morgan. Cantor Fitzgerald & Co. is CFAC V's financial advisor, capital markets advisor, and placement agent on the PIPE.

Picture Credits: SpaceNews

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