Astra has agreed to merge with Holicity (Nasdaq: HOL), a special purpose acquisition company backed by Pendrell Holicity Holdings, in a deal that would also transform the small satellite launch services provider into a publicly traded company.
Alameda, California-based Astra said the transaction implies a $2.1 billion enterprise valuation for the rocket builder and the two parties expect the combination to generate cash proceeds of up $500 million.
Proceeds will consist of $300 million from Holicity’s trust account and another $200 million, or $10 per share, through a BlackRock-managed private investment in public equity process.
Shareholders in Astra will own 78 percent of the combined company while its founders will hold supervoting shares of common stock.
“This transaction takes us a step closer to our mission of improving life on Earth from space by fully funding our plan to provide daily access to low Earth orbit from anywhere on the planet,” said Chris Kemp, founder, chairman and CEO of Astra.
Kemp will lead the combined firm that will adopt the Astra name and trade under the “ASTR” symbol on the Nasdaq market.
Holicity Chairman and CEO Craig McCaw could join the future entity’s board of directors.
The boards of the two companies have approved the merger and both parties aim to close the transaction in the second quarter of this year.
Founded in 2016, Astra has reported $150 million in space launch support contracts with government and commercial customers and noted it aims to commence payload deliveries beginning this summer.
