Innovative Rocket Technologies, or iRocket, has signed a nonbinding letter of intent to merge with special purpose acquisition company BPGC Acquisition in a transaction that would result in the reusable space rocket developer becoming a publicly traded company.
In a joint release published Monday, the companies said a definitive agreement is expected to be executed in the summer of 2025 and completed before the end of the year.
BPGC is backed by Wilbur Ross, former secretary of the Department of Commerce.
The proposed deal values iRocket at $400 million before potential earnouts based on share price performance.
Transforming the Tactical Capabilities of Space Launch
“Our mission is to secure the future of U.S. defense and space capabilities,” said Asad Malik, founder and CEO of iRocket.
“We believe that partnering with BPGC Management LP and Wilbur Ross will give us the strategic capital, network and governance to execute our mission at scale. They recognize that iRocket’s proprietary design and technologies have the potential to transform the economics and tactical capabilities of space launch, which is essential to national security,” Malik added.
Ross, who is expected to join iRocket’s board, described the rocket company as “both visionary and execution-focused.”
“The team has developed breakthrough technology, and we believe iRocket is uniquely positioned to serve the U.S. defense industrial base, support allies and drive innovation across space and national security. We look forward to helping the company scale its operations, secure government contracts, and expand globally,” the former Commerce secretary added.
Under the letter of intent, iRocket and BPGC would become a combined entity expected to be listed on Nasdaq.
Cohen & Company Capital Markets serves as iRocket’s exclusive sell-side adviser and lead capital markets adviser, while Greenberg Traurig acts as the rocket company’s legal counsel in the transaction.
White & Case advises BPGC on the proposed transaction’s legal aspect.
What Does iRocket Do?
Founded in 2018, iRocket is developing reusable rocket engines using 3D printing and additive manufacturing technology. The company has developed the Shockwave launch vehicle, which is designed for recovery and reuse of all of its stages.
The company can reload, recondition and relaunch its rockets within 24 hours to meet the needs of defense, scientific and commercial customers for on-demand, tactically responsive access to space. Its patented rocket engines run on liquid oxygen and methane.
iRocket is working with the Department of Defense on its patented reusable rockets under a $1.8 million tactical funding increase and a cooperative research and development agreement valued at $18 million.
