By Chris Wack

 

Virgin Orbit confirmed it will be taken public in a deal with NextGen Acquisition Corp. II, a special purpose acquisition company.

Earlier, the Wall Street Journal reported that Boeing Co. has committed to investing in Richard Branson's Virgin Orbit as part of the satellite-launching startup's planned $3.2 billion listing later this year.

Upon closing, the transaction is expected to provide the combined company up to $483 million in cash proceeds, including up to $383 million of cash held in the trust account of NextGen and a $100 million fully committed private investment in public equity.

The combined company will retain the Virgin Orbit name and is expected to be listed on Nasdaq under the ticker symbol VORB.

The transaction values Virgin Orbit at an implied pro forma enterprise value of $3.2 billion and is expected to close around the end of the year.

Virgin Orbit's existing shareholder base is comprised of Virgin Group, Mubadala Investment Co., and management and employees. Existing Virgin Orbit shareholders will roll 100% of their equity into the combined company. Existing Virgin Orbit shareholders are expected to retain ownership of 85% of the combined company, NextGen's public shareholders are expected to own 10% of the combined company, with PIPE investors and the SPAC sponsor expected to own 3% and 2%, respectively, immediately following closing.

Boeing's planned investment is intended to be made through the PIPE.

Shares of NextGen Acquisition were halted at $9.86 a share in premarket trading.

 

Write to Chris Wack at chris.wack@wsj.com

 

(END) Dow Jones Newswires

August 23, 2021 07:39 ET (11:39 GMT)

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