Cantor Fitzgerald SPAC to Release Satellite Data Collector

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(Bloomberg) – Satellogic, a Buenos Aires-based company that uses satellites to map the earth, is considering going public after a merger with Cantor Fitzgerald’s blank check company.



Cantor Fitzgerald SPAC to release satellite data collector


© Bloomberg
Cantor Fitzgerald SPAC to Release Satellite Data Collector

The deal would give the company an enterprise value of $ 850 million and allow it to expand its satellite network from 17 to more than 300 by 2025, according to a statement. The company provides high-resolution images and geospatial data to governments and customers in the forestry, agriculture, energy and insurance industries.

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“The merger will allow us to continue to develop our constellation of satellites and maintain our position as a world leader in submeter imaging,” said Emiliano Kargieman, co-founder and CEO of Satellogic.

Special purpose acquisition companies such as the one operated by Cantor Fitzgerald – blank check companies that connect private companies to public capital markets – have grown in popularity in 2020 and early 2021 and have accounted for nearly the half of this year’s record initial public offering volume. in the United States But the industry has cooled in recent weeks amid speculation it could fuel excesses, with the IPOX SPAC index, which tracks the performance of a group of blank check companies, in down more than 20% from its peak in mid-February.

PSPC actions won up to a maximum of 1.8% within two weeks of the news.

Satellogic, whose primary backers include Tencent Holdings Ltd., Pitanga Fund and IDB Lab, will trade on the Nasdaq under the ticker symbol SATL. SBLA Advisers Corp. and Softbank’s Cantor Fitzgerald were among the investors who pledged to participate in the transaction through a $ 100 million private equity investment, or PIPE, according to the statement. The transaction is expected to be finalized in the fourth quarter of 2021.

The expansion of the satellite over the next four years will allow the company to take a high-resolution image of the entire planet “every day and turn it into a live catalog that we can search, query and turn into a better shot. decision-making, ”Kargieman said in an interview.

Until now, the primary use of the company’s data has focused on defense and intelligence data sold to governments to monitor borders and maritime security. But Kargieman said the company has also tested other uses, from agricultural harvest times to monitoring infrastructure projects, surface mines and hydroelectric projects, and that one of the reasons the company started was to monitor climate change.

‘Our mission’

As its fleet of satellites grows, the company is looking to reduce the cost of data collection and begin offering ‘bundles’ of data catalogs to customers who would be location-dependent. of the project they are interested in, a small farmer in India or a large company in the United States Satellogic also seeks to offer its customers value-added analyzes and predictive models based on data.

“It increases when we have the ability to deliver data to customers at zero marginal cost,” he added. “For example, when we have 60 satellites, we will be able to provide data every week, which opens up a market opportunity of $ 40 billion.” The company is looking to reach that number of satellites by early 2023.

The deal gives the company $ 274 million to fund the company’s growth plan, as well as $ 41 million for debt repayment, according to a company presentation. Satellogic has 210 employees and plans to double its size by the end of 2022.

The founders and employees of the company own around 35% of the company, Kargieman added. Prior to the announcement, the company had raised $ 150 million in two previous funding rounds, in which Tencent had participated. Tencent is no longer an active shareholder but continues to hold warrants in the company, said Kargieman.

“We don’t see being a public company as an end in itself, but we see this transaction as a great way to finance our growth and continue to fulfill our mission,” he added.

(Updates with interview comments in sixth, seventh paragraphs)

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© 2021 Bloomberg LP

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