Rocket Lab reportedly set to reach merger deal with Vector Acquisition

Space-transportation start-up Rocket Lab USA is reportedly set to reach a merger agreement with special-purpose acquisition company (SPAC) Vector Acquisition.

The Wall Street Journal reported citing people familiar with the development that the small satellite launch company plans to go public.

The potential transaction is expected to be finalised as early as today. If agreed, the deal would take its value to $4.1bn, including debt.

The news comes after Vector Acquisition raised $300m in an initial public offering supported by private-equity firm Vector Capital last September.

Headquartered in the US, the majority of Rocket Lab staff is located in New Zealand. The company launches all its rockets from the Māhia Peninsular near Gisborne.

Earlier this month, Rocket Lab announced its upcoming missions, including the deployment of a range of satellites for commercial and government operators.

Proceeds from the deal could be used for a medium-lift Neutron launch vehicle. It is being developed for launching most satellite mega-constellations, space missions and commercial spaceflight in the coming years.

Rocket Lab’s Neutron rocket would serve as an affordable alternative to larger vehicles.

The firm will also place an advanced Photon spacecraft in orbit to develop spacecraft heritage ahead of Rocket Lab’s mission to the Moon for Nasa in the third quarter of this year.