Spire Global, a space-based data and analytics provider headquartered in San Francisco, is set to go public through a merger agreement with NavSight Holdings (NYSE: NSH) as part of a push to advance growth strategy, product development, sales and marketing efforts.
The boards of directors of both companies unanimously approved the proposed transaction, which is expected to be completed in the summer of this year and gives the combined company a valuation of $1.6 billion, the companies said in a joint release published Monday.
Spire uses a constellation of nanosatellites called low Earth multiuse receiver or LEMUR for space-based data collection and offers software analytics that can generate data and insights through a subscription model in support of customers worldwide across government, maritime, weather and aviation industries. The company is also advancing a “space-as-a-service” business model that allows clients to operate their own payloads on orbit and receive data within a year.
NavSight is a newly established “blank check” entity or special purpose acquisition company focused on identifying target companies that provide technologies for U.S. government clients in support of their defense, national security and intelligence missions.
Spire stakeholders will maintain 100 percent of their equity holdings in the combined entity, which will will list on the New York Stock Exchange using the ticker symbol “SPIR.”
Upon closing of the merger and assuming no redemptions by NavSight stockholders, Spire’s existing shareholders will hold about 67 percent of the fully diluted shares of common stock in the combined company.
Both parties expect the proposed deal to generate gross proceeds of up to $475 million, including up to $230 million in cash held in NavSight’s trust account and $246 million through a private investment in public equity backed by Tiger Global Management, Hedosophia, BlackRock Advisors, Bloom Tree Partners and Jaws Estates Capital.
Credit Suisse Securities (USA) acts as exclusive financial and capital markets adviser to NavSight. Venable advises NavSight on the transaction’s legal aspect.
BofA Securities serves as exclusive financial adviser to Spire, while Wilson Sonsini Goodrich & Rosati acts as the company’s legal adviser to Spire.