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Satellogic to go public in SPAC with $850m valuation

The transaction is expected to allow Satellogic to scale its constellation, with the goal of reaching 300+ satellites by 2025.

Earth Observation (EO) space startup Satellogic has announced that it will go public through a merger with a special purpose acquisition company (SPAC), raising the funding it needs to build out a constellation of 300 spacecraft.

Satellogic entered into a definitive merger agreement with CF Acquisition Corp. V. The transaction reflects an implied pro forma enterprise value of $850m for Satellogic, representing a multiple of approximately 1.1bn projected revenue of approximately $800m by 2025.

The transaction is expected to result in cash on the balance sheet of up to approximately $274m, after transaction expenses and debt repayment, through the contribution of up to $250m of cash held in CFAC V’s trust account, and a concurrent PIPE offering of $100m led by SoftBank’s SBLA Advisors Corp. and Cantor Fitzgerald, among other top-tier institutional investors.

The transaction is expected to be completed early in the Q4 of 2021, subject to regulatory approvals and other customary closing conditions. After closing, Satellogic will trade on the Nasdaq under the ticker symbol SATL.

Satellogic recently signed a multiple-launch agreement with SpaceX to deploy the full constellation of 300+ satellites, which it expects to complete by 2025. Once fully deployed, this will enable Satellogic to be the only company capable of remapping the world at resolutions as high as 30 centimetres and at the frequency required to address virtually all commercial applications.

Speaking about the merger, Emiliano Kargieman, CEO & Co-Founder of Satellogic, said: “Since our founding, Satellogic has been committed to our mission of democratising access to geospatial data to help solve the world’s most pressing problems. Today’s transaction is a significant milestone and brings us one step closer to fulfilling that goal. The merger will allow us to continue building out our constellation of satellites and maintain our position as a global leader in sub-meter imagery. Satellogic is poised to be the only company capable of remapping the world daily at the sub-meter resolution necessary to address commercial applications affordably. We are grateful to our talented and ambitious team who have developed best-in-class technology, a strong track record of delivering satellites to orbit, and the ability to scale at near-zero marginal cost.”

Howard W Lutnick, Chairman & CEO of CFAC V and Cantor Fitzgerald said: “Satellogic is uniquely positioned to dominate the Earth Observation industry. Its technology, data, and analytics have vast use cases across countless industries. Imagine insurance companies being able to document disaster damage in real-time detail remotely. Or an app providing direct daily satellite data to a farmer about the best time to harvest crops. Or bringing live documentation of deforestation or rising sea levels to policymakers to drive the discussion around climate change. The possibilities are limitless. We are excited to partner with Emiliano and the rest of the Satellogic team as they endeavour to build and launch 300+ satellites in the constellation and unlock the significant opportunity for commercial applications to enable smarter global decision-making.”

JP Morgan is serving as exclusive financial advisor to Satellogic, with Friedman Kaplan Seiler & Adelman LLP and Greenberg Traurig LLP serving as legal counsel to the Company. Cantor Fitzgerald & Co. is serving as financial advisor and capital markets advisor to CFAC V as well as placement agent on the PIPE, with Hughes Hubbard & Reed LLP serving as legal counsel to CFAC V.

Satellogic satellites offer 70 cm per pixel of resolution and each satellite can collect approximately 300,000 square km of data per day.